Periodically we give an update on some of the top interest rate deals available in the USA. All of these rates are for products that offer the protection of principal against market loss. We always want to compare it to national average rates for Bank CD's. These figures are found at Bankrate.com and are the most recent rates available.
1 year CD 3.63% 1 year IRA CD 3.26%
5 year CD 4.16% 5 year IRA CD 3.93%
Now lets look at some safe rates with bank alternatives. You tell me which you would rather have working with your money.
3 year guaranteed rate 5.00%
3 year staggered rate 1st year 5.80% year 2-3 rate 4.80%
5 year 5.20%
5 year staggered rate 1st year 6.10% years 2-5 rate 5.10%
7 year 5.45%
7 year staggered rate 1st year 6.25% years 2-7 rate 5.25%
Contact us for additional information and to determine if they are suitable for your financial situation. Minimum $ contributions apply and so do surrender charges for early withdrawal beyond any authorized amounts. Not all products are available in all 50 states.
How do these rates sound to you?
How can we help you?
www.columbusfinancialplanningpros.com
Monday, August 25, 2008
Invitation to Small Group Financial Seminar
In September We will be hosting two small group seminars on Financial Topics. If you like what you read in our Blog entries or on our website we would like to invite you to join us in person for a seminar or seminars on various financial topics. The first mini seminars will be held in the northern suburbs of Columbus, Oh. Future seminars will be held in other areas depending on the interest shown. Initial topics for the first two seminars will be the following.
1 Safer Money Financial Strategies
2 Increasing Seniors Financial Security Through Asset Reallocation Strategies
future topics will include
College funding
Reverse Mortgages
Alternatives for Long Term Care
Other topics as selected by readers
Please note:
These will be small groups probably 10 or less per group. If we get 28 people We will do 3 small more personal groups rather than 1 large group. Its my personal choice and is less intimidating for the attendees.
No money will be accepted at the seminars. Leave your checkbook at home
If you want to schedule a follow up face to face meeting we will arrange that following the mini seminars
You have no obligation to attend a follow up meeting
Being invited to attend a seminar is no guarantee of being accepted as a client
If interested in being invited to attend a seminar please respond by e-mail or through the website
Website
www.columbusfinancialplanningpros.com
email
polarisfinancialservices@gmail.com
1 Safer Money Financial Strategies
2 Increasing Seniors Financial Security Through Asset Reallocation Strategies
future topics will include
College funding
Reverse Mortgages
Alternatives for Long Term Care
Other topics as selected by readers
Please note:
These will be small groups probably 10 or less per group. If we get 28 people We will do 3 small more personal groups rather than 1 large group. Its my personal choice and is less intimidating for the attendees.
No money will be accepted at the seminars. Leave your checkbook at home
If you want to schedule a follow up face to face meeting we will arrange that following the mini seminars
You have no obligation to attend a follow up meeting
Being invited to attend a seminar is no guarantee of being accepted as a client
If interested in being invited to attend a seminar please respond by e-mail or through the website
Website
www.columbusfinancialplanningpros.com
polarisfinancialservices@gmail.com
Retirement How Much Can I Withdraw Yearly
A recent survey showed how little the typical American knows about retiring within their means. It was frightening to me. The survey showed that the average person believes that they can safely withdraw 10% per year and still retire safely and comfortably. How Wrong Could they Be!
Very Wrong!
A reasonable rule of thumb passed around the financial industry is that 4% is safe. Even that is sometimes dangerous. In periods of high inflation like 2008 and in periods of market turmoil like 2008 even 4% may be too much with a typical asset allocation strategy. Is there a trend here? Is 2008 turning into The Perfect Fiscal Storm? This is a play on words related to the Warner Brothers movie The Perfect storm released in 2000. the movie starred George Clooney and Mark Wahlberg and deals with the synergistic impact of two storms colliding and turning into "The Perfect Storm" a real monster.
What can you do about it?
We have products available that help you create a lifetime income stream that you or you and your spouse cannot outlive. In effect we can help you turn some portion of your assets into a personal pension. Sound interesting?
How can we help you? Contact us for a no charge initial consultation.
Very Wrong!
A reasonable rule of thumb passed around the financial industry is that 4% is safe. Even that is sometimes dangerous. In periods of high inflation like 2008 and in periods of market turmoil like 2008 even 4% may be too much with a typical asset allocation strategy. Is there a trend here? Is 2008 turning into The Perfect Fiscal Storm? This is a play on words related to the Warner Brothers movie The Perfect storm released in 2000. the movie starred George Clooney and Mark Wahlberg and deals with the synergistic impact of two storms colliding and turning into "The Perfect Storm" a real monster.
What can you do about it?
We have products available that help you create a lifetime income stream that you or you and your spouse cannot outlive. In effect we can help you turn some portion of your assets into a personal pension. Sound interesting?
How can we help you? Contact us for a no charge initial consultation.
Sunday, August 24, 2008
Business Owners and IRA holders and Loss In Asset Value
Business owners, Self Employed business owners and IRA savers.
We have a question for you. Have your retirement funds decreased in value over the past year or two? Does this upset you? It should! Would you like to prevent that from happening again in the future? We can fix it without the financial risk of market losses. Shouldn't that be your goal? Would you have more assets today if you never had suffered a market loss? In almost every case the answer is a resounding YES!
We can help design or modify a retirement plan to eliminate the risk of market loss and still provide a reasonable rate of return on your retirement assets. Initial bonus on your starting contributions or rollover contributions can help replace some or all of the losses suffered due to market volatility. Does that sound interesting? It doesn't matter whether your current plan is a 401 K Plan, a SIMPLE Plan, a ROTH or Traditional IRA Plan or even a KEOGH plan.
Would you be interested in offering as a plan option a ROTH 401K Plan? If we can't work with your current plan administrator we can switch to a Safe money friendly plan administrator. Why not permit your you or you and your employees to select a plan option offering a reasonable rate of return with no risk of loss due to market volatility. By the way we can also guarantee you and your employees a lifetime income stream that you cannot outlive all within the same retirement plan.
Contact us for a fee free initial consultation about your specific situation!
We have a question for you. Have your retirement funds decreased in value over the past year or two? Does this upset you? It should! Would you like to prevent that from happening again in the future? We can fix it without the financial risk of market losses. Shouldn't that be your goal? Would you have more assets today if you never had suffered a market loss? In almost every case the answer is a resounding YES!
We can help design or modify a retirement plan to eliminate the risk of market loss and still provide a reasonable rate of return on your retirement assets. Initial bonus on your starting contributions or rollover contributions can help replace some or all of the losses suffered due to market volatility. Does that sound interesting? It doesn't matter whether your current plan is a 401 K Plan, a SIMPLE Plan, a ROTH or Traditional IRA Plan or even a KEOGH plan.
Would you be interested in offering as a plan option a ROTH 401K Plan? If we can't work with your current plan administrator we can switch to a Safe money friendly plan administrator. Why not permit your you or you and your employees to select a plan option offering a reasonable rate of return with no risk of loss due to market volatility. By the way we can also guarantee you and your employees a lifetime income stream that you cannot outlive all within the same retirement plan.
Contact us for a fee free initial consultation about your specific situation!
Savings and Inflation
There was an article in the Dispatch today August 24, 2008 talking about "Who's helping savers fight inflation"
The answer is it's not the banks or money markets. The article states the average inflation rate is close to 5%. More updated figures actually show that for the past 12 months the rate is actually 9.8%. This ties into some other blog topic I wrote about on August 21st. Bank CD rates were averaging 3.6% and average bank saving rates are 0.37% that is actually down from the 0.46% rate of last summer. It never ceases to amaze me that people will give banks their money for that poor a rate of return. You might as well burn 6-9% of your money per year if you insist on keeping large amounts of money in a bank. FDIC insurance up to limits exists but what about inflation risk? The comment I made about burning money is real and it represents the inflation risk! FDIC Insurancedoes not protect against inflation risk. That is your responsibility together with a good financial advisor who understands and endorses safe money strategies to PROTECT YOUR MONEY.
Almost no one is speaking out for the savers. Greg McBride an analyst for BankRate.com was quoted as saying "for the past 12 months there has been a double whammy for savers as interest rates have fallen and inflation has increased"
He is absolutely right. There are alternatives for smart savers or investors! It is not possible to properly plan for or take care of your retirement at these rates!!
How can we help you?
website
www.columbusfinancialplaanningpros.com
The answer is it's not the banks or money markets. The article states the average inflation rate is close to 5%. More updated figures actually show that for the past 12 months the rate is actually 9.8%. This ties into some other blog topic I wrote about on August 21st. Bank CD rates were averaging 3.6% and average bank saving rates are 0.37% that is actually down from the 0.46% rate of last summer. It never ceases to amaze me that people will give banks their money for that poor a rate of return. You might as well burn 6-9% of your money per year if you insist on keeping large amounts of money in a bank. FDIC insurance up to limits exists but what about inflation risk? The comment I made about burning money is real and it represents the inflation risk! FDIC Insurancedoes not protect against inflation risk. That is your responsibility together with a good financial advisor who understands and endorses safe money strategies to PROTECT YOUR MONEY.
Almost no one is speaking out for the savers. Greg McBride an analyst for BankRate.com was quoted as saying "for the past 12 months there has been a double whammy for savers as interest rates have fallen and inflation has increased"
He is absolutely right. There are alternatives for smart savers or investors! It is not possible to properly plan for or take care of your retirement at these rates!!
How can we help you?
website
www.columbusfinancialplaanningpros.com
Thursday, August 21, 2008
How To Minimize the Damage From A 9.8% Inflation Rate
Over the last 12 months the USA inflation rate is up 9.8%. Investing at a bank with an average yield of 1-4% means that before taxes you have a net negative return of 5.8-8.8%. Your buying power has actually decreased by that 5.8-8.8%. To make it worse you are getting taxed on the rate paid by the bank at a 15-33% rate even if you leave the money in the bank account. OUCH!! To asses the damage start with your earning rate subtract the tax rate you pay, then subtract the 9.8% inflation rate. This year that number looks like it will be a negative number for almost everyone. Minimize the damage! Protect your principal! Some years just staying even is a great place to be. Its better than a 20-30% market loss! Efficient money management is even more important in a bad year than it is in a good year. The impact on most people from 2001-2002 took 5-6 years to recover.
Let's repeat it again. Protect your Principal! Balance your assets with at least some no risk financial products. We can even create a lifetime income source that is not subject to market risk.
There has to be a better way! There is a better way! As long as the inflation rate stay this high there is no safe way to beat inflation and remain risk free. You owe it to yourself to get the best rate of return you can and maintain the highest degree of safety that you can in the process.
A 7.2% guaranteed rate of increase in an Income Account value with the potential of a higher rate of return depending on economic conditions seems to be about the best combination of risk-reward ratio I have seen in the last year. Hopefully the gas prices and commodity prices will continue to ease a little bit and the inflation rate for the next 12 months will be more moderate. Perhaps we will get back to a 2-3% increase in the Consumer Price Index (CPI). At that level you can actually grow your assets but until then most people will do well just to minimize the damage to their assets.
Contact us to arrange a no fee initial consultation. We can help you protect yourself in the bad years and take advantage of the good years all with little to no risk. If this is a philosophy that appeals to you we should certainly talk. Business owners and individuals can all benefit from these strategies. We can structure safer money planning into your retirement plans.
We can not help everyone, but how can we help you?
www.columbusfinancialplanningpros.com
Let's repeat it again. Protect your Principal! Balance your assets with at least some no risk financial products. We can even create a lifetime income source that is not subject to market risk.
There has to be a better way! There is a better way! As long as the inflation rate stay this high there is no safe way to beat inflation and remain risk free. You owe it to yourself to get the best rate of return you can and maintain the highest degree of safety that you can in the process.
A 7.2% guaranteed rate of increase in an Income Account value with the potential of a higher rate of return depending on economic conditions seems to be about the best combination of risk-reward ratio I have seen in the last year. Hopefully the gas prices and commodity prices will continue to ease a little bit and the inflation rate for the next 12 months will be more moderate. Perhaps we will get back to a 2-3% increase in the Consumer Price Index (CPI). At that level you can actually grow your assets but until then most people will do well just to minimize the damage to their assets.
Contact us to arrange a no fee initial consultation. We can help you protect yourself in the bad years and take advantage of the good years all with little to no risk. If this is a philosophy that appeals to you we should certainly talk. Business owners and individuals can all benefit from these strategies. We can structure safer money planning into your retirement plans.
We can not help everyone, but how can we help you?
www.columbusfinancialplanningpros.com
Wednesday, August 20, 2008
5 Year Rate 5.10% Guaranteed
new higher rate on 5 yr MYGA
brand new higher rate has been released for 5 year single premium deferred annuity. Current best rate available. Year one to year five guarantee rate 5.10 %. This is a tax deferred product so you get no 1099 form until you begin to withdraw money.Understand that the rate is subject to change until policy is written. Rate usually change once a month but may occasionally change more often.
How does this compare to national bank CD rates. I checked Bankrate.com today and found the national overnight rate on a 5 yr CD was 4.16% and for a 5 Year IRA CD the rate is 3.91%. The 5 year CD non IRA rates are taxable rates and you get a 1099 form for this years taxes. The annuity rates are almost 20% higher than the regular Bank CD rate and 30% higher than the Bank IRA CD rate. Why would anyone ever go to the bank for one??? We can get you the same rate on qualified (IRA money) and non qualified money.
How can we help you?
www.columbusfinancialplanningpros.com
Tuesday, August 19, 2008
MSN Money video article Family In Financial Crisisn
MSN had an article and video on a woman and her family in financial crisis. Laurie Cook has been caught between a rock and a hard place. Her Mother has Alzheimers and her brother has significant medical problems as well. I had a client in St Louis with a similar situation.
They were facing foreclosure. The solution for my St Louis Client was a HUD HECM Reverse Mortgage. We stopped the foreclosure, paid off back taxes and set up a cash reserve to help pay the next couple of years taxes and condo fees. As a bonus they got to stop making mortgage payments as long as Mother was able to stay at home. This same approach might just work here as well. It is not perfect and only about 60-70 percent of people who want one are able to qualify for a reverse mortgage, in my experience.
If you know anyone in this type of situation there may be an alternative.
We can help!
website
www.columbusfinancialplanningpros.com
e-mail
polarisfinancialservices@gmail.com
They were facing foreclosure. The solution for my St Louis Client was a HUD HECM Reverse Mortgage. We stopped the foreclosure, paid off back taxes and set up a cash reserve to help pay the next couple of years taxes and condo fees. As a bonus they got to stop making mortgage payments as long as Mother was able to stay at home. This same approach might just work here as well. It is not perfect and only about 60-70 percent of people who want one are able to qualify for a reverse mortgage, in my experience.
If you know anyone in this type of situation there may be an alternative.
We can help!
website
www.columbusfinancialplanningpros.com
polarisfinancialservices@gmail.com
Small Busines Retirement Planning
Business owners and self employed professionals. Cost effective 401K ROTH or Traditional plans are available. With Safe harbor plans you can maximize your contributions with minimal employee contributions. Self employed 401 K plans start at about $400 per year in administrative fees. Fees are higher if you have non owner employees. We can also help you implement no fee SIMPLE Plans as well.
Plans are available with guaranteed no market risk. Some options offer a minimum of 3-7.2% annual growth as a worst case alternative. There is substantial upside growth potential above the floor. We would be happy to discuss your plan needs in detail. Business owners can shelter as much as $45,000 per year from personal tax liability. The exact amount you can shelter is formula driven but we can get you a detailed quote.
How can we help you?
www.columbusfinancialplanningpros.com
Plans are available with guaranteed no market risk. Some options offer a minimum of 3-7.2% annual growth as a worst case alternative. There is substantial upside growth potential above the floor. We would be happy to discuss your plan needs in detail. Business owners can shelter as much as $45,000 per year from personal tax liability. The exact amount you can shelter is formula driven but we can get you a detailed quote.
How can we help you?
www.columbusfinancialplanningpros.com
Saturday, August 16, 2008
Earn a 12 percent Bonus
If someone said that they would give you a 12% bonus when you decided to save money would you talk to them? Lets say you decided to save $20,000 for the next 10 years or longer. Your day one account balance would be $22,400. Would that get your attention? Every time you decided to put money aside for the next 5 years you can get an immediate 12% bonus. This works for your long term needs whether it is for your retirement or for college saving. This is in a ten year or longer saving vehicle, with a surrender charge if you decide to take your money and run before the surrender charge period expires. It does permit penalty free access to a portion of your funds annually.
You get a tax deferred growth strategy. No IRS 1099 form is generated until you withdraw money. You have a chance to make about 7% in an average year and the possibility of double digit gains of up to about 20 % in a great year. In a really bad year when many people are loosing 10-25% you won't lose a nickle! Each years gains are 100% vested. You have zero market risk of loss of principal. This is one option available from one of the top financial companies in the world. Oh by the way how about the ability to create lifetime income that you cannot outlive!
This is not too good to be true. It is available now but not for long. Numerous other products are available with similar features. A brief discussion can determine which is right for you.
Has your local bank offered you this? Probably not but maybe a toaster! Maybe 3-4.5%.
How about your local broker? Have they ever lost some of your money? If you are ready for diversification with safety we should talk. I am not saying do not put any money in a bank or a brokerage account. I have both. Banks pay low rates and brokers generally sell risk! Where is your safe money? Thats where we can help!
How can we help you!
www.columbusfinancialplanningpros.com
polarisfinancialservices@gmail.com
You get a tax deferred growth strategy. No IRS 1099 form is generated until you withdraw money. You have a chance to make about 7% in an average year and the possibility of double digit gains of up to about 20 % in a great year. In a really bad year when many people are loosing 10-25% you won't lose a nickle! Each years gains are 100% vested. You have zero market risk of loss of principal. This is one option available from one of the top financial companies in the world. Oh by the way how about the ability to create lifetime income that you cannot outlive!
This is not too good to be true. It is available now but not for long. Numerous other products are available with similar features. A brief discussion can determine which is right for you.
Has your local bank offered you this? Probably not but maybe a toaster! Maybe 3-4.5%.
How about your local broker? Have they ever lost some of your money? If you are ready for diversification with safety we should talk. I am not saying do not put any money in a bank or a brokerage account. I have both. Banks pay low rates and brokers generally sell risk! Where is your safe money? Thats where we can help!
How can we help you!
www.columbusfinancialplanningpros.com
polarisfinancialservices@gmail.com
Thursday, August 14, 2008
new higher rate on 5 yr MYGA
brand new higher rate has been released for 5 year single premium deferred annuity. Current best rate available. Year one rate including bonus 6.70% years 2-5 guarantee rate 4.70 with a combined 5 yr rate of 5.09%. This is a tax deferred product so you get no 1099 form until you begin to withdraw money.
Understand that the rate is subject to change until policy is written. Rate usually change once a month but may occasionally change more often.
How does this compare to national bank CD rates. I checked Bankrate.com today and found the national overnight rate on a 5 yr CD was 4.15% and that compares to a rate of 4.16 last week. These rates are taxable rates and you get a 1099 form for this years taxes.
Understand that the rate is subject to change until policy is written. Rate usually change once a month but may occasionally change more often.
How does this compare to national bank CD rates. I checked Bankrate.com today and found the national overnight rate on a 5 yr CD was 4.15% and that compares to a rate of 4.16 last week. These rates are taxable rates and you get a 1099 form for this years taxes.
Tuesday, August 12, 2008
Long Term Care Educational Video
Our apologies. This blog entry is being repeated because the content very important and the original entry was lost as a draft.
Kiplinger Magazine and John Hancock Insurance Company have created a very informative 22 minute educational video on Long Term Care (LTC). It discusses who need it , where care is or can be provided, how much it costs for care, how much Insurance costs, and how to pay for it.
The link for that video is included on our website. Once in the website go to external links
www.columbusfinancialplanningpros.com
Kiplinger Magazine and John Hancock Insurance Company have created a very informative 22 minute educational video on Long Term Care (LTC). It discusses who need it , where care is or can be provided, how much it costs for care, how much Insurance costs, and how to pay for it.
The link for that video is included on our website. Once in the website go to external links
www.columbusfinancialplanningpros.com
Monday, August 11, 2008
Caring For Your Aging Parents
There is a new book out . The title is "Stuck in the Midddle: Shared Stories and Tips for Caregiving Your Elderly Parents" It is written by Barbara McVicker.
She shares some of her own experiences in dealing with her aging parents. Any book like this can give you some ideas to share with your siblings and your parents in the context of starting a discussion of preparations for death or infirmity. It should be worth the read!
I wont agree with everything she says but I do agree with several key points that she makes.
First get your own papers in order and make sure that your parents have their papers in order.
Second make sure that you have a Durable Power of Attorney set up with some one that you trust absolutely.
Her suggestion about changing a will just because you move makes me nervous especially if there is any hint of memory impairment on the part of either partner. Even if your state only requires two witnesses I would think that three would be safer.
Financial records, Brokerage account statements, bank statements birth certificates, marriage certificates, Wills, Powers of Attorney, Living will, a personal list of special bequests for heirs Mortgage documents, property title, vehicle titles and Trust documents if you have one..
If you have more than a modest estate I would have to ask why do you not have one.
We work with Attorneys in Ohio to deliver Wills and Trusts for Ohio residents. We can also take care of general financial needs and planning and can help with LTC planning and providing LTC Insurance.
How can we help you??
www.columbusfinancialplanningpros.com
She shares some of her own experiences in dealing with her aging parents. Any book like this can give you some ideas to share with your siblings and your parents in the context of starting a discussion of preparations for death or infirmity. It should be worth the read!
I wont agree with everything she says but I do agree with several key points that she makes.
First get your own papers in order and make sure that your parents have their papers in order.
Second make sure that you have a Durable Power of Attorney set up with some one that you trust absolutely.
Her suggestion about changing a will just because you move makes me nervous especially if there is any hint of memory impairment on the part of either partner. Even if your state only requires two witnesses I would think that three would be safer.
Financial records, Brokerage account statements, bank statements birth certificates, marriage certificates, Wills, Powers of Attorney, Living will, a personal list of special bequests for heirs Mortgage documents, property title, vehicle titles and Trust documents if you have one..
If you have more than a modest estate I would have to ask why do you not have one.
We work with Attorneys in Ohio to deliver Wills and Trusts for Ohio residents. We can also take care of general financial needs and planning and can help with LTC planning and providing LTC Insurance.
How can we help you??
www.columbusfinancialplanningpros.com
Friday, August 8, 2008
Why Gen Y is Broke
Here is an interesting link to an MSN internet article
http://articles.moneycentral.msn.com/Investing/HomeMortgageSavings/WhyGenerationYIsBroke.aspx?GT1=33011
The quick summary is that many in generation Y are being swallowed in debt, student debt, credit card debt, expensive car loans, etc. They often don't know how to budget and they are not saving. It seems to be that this is a generation largely characterized by "I want it now, and I'm entitled to it" Please understand I know that not every one in this generation is so materially focused! I know that many are committed to worthwhile causes and volunteer efforts. However in general there is a spoiled attitude.
The cartoonist Stahler for the Columbus Dispatch pointed it out in a cartoon on July27th.
Two young Generation Y ladies are walking by a newspaper vending machine. The papers headline reads "Americans Don't Know how to save" The two ladies are carrying bags full of miscellaneous stuff the just bought at their favorite designer stores. One says to the other
"But I've got necessities: iphone, Wii games, My latte with a double shot..."Etc
I know of one young high school student that has wrecked 3 cars in under two years. Why would a parent continue to provide cars for that irresponsible idiot child? The child isn't paying for the cars. Why would there be a need for so many Starbucks stores selling overpriced $4-5 coffee drinks. Within 2 miles of where I am writing this there are at least 5 Starbucks locations. Who needs Starbucks at that price with 5 locations within 2 miles?
www.columbusfinancialplanningpros.com
http://articles.moneycentral.msn.com/Investing/HomeMortgageSavings/WhyGenerationYIsBroke.aspx?GT1=33011
The quick summary is that many in generation Y are being swallowed in debt, student debt, credit card debt, expensive car loans, etc. They often don't know how to budget and they are not saving. It seems to be that this is a generation largely characterized by "I want it now, and I'm entitled to it" Please understand I know that not every one in this generation is so materially focused! I know that many are committed to worthwhile causes and volunteer efforts. However in general there is a spoiled attitude.
The cartoonist Stahler for the Columbus Dispatch pointed it out in a cartoon on July27th.
Two young Generation Y ladies are walking by a newspaper vending machine. The papers headline reads "Americans Don't Know how to save" The two ladies are carrying bags full of miscellaneous stuff the just bought at their favorite designer stores. One says to the other
"But I've got necessities: iphone, Wii games, My latte with a double shot..."Etc
I know of one young high school student that has wrecked 3 cars in under two years. Why would a parent continue to provide cars for that irresponsible idiot child? The child isn't paying for the cars. Why would there be a need for so many Starbucks stores selling overpriced $4-5 coffee drinks. Within 2 miles of where I am writing this there are at least 5 Starbucks locations. Who needs Starbucks at that price with 5 locations within 2 miles?
www.columbusfinancialplanningpros.com
Wednesday, August 6, 2008
College financing and Keno Cartoon
I like Stahler the cartoonist from the Columbus Dispatch. On August 5 his cartoon dealt with several financial issues. College finance, gambling, and the new KENO game from the lottery.
This cartoon has two college students looking at KENO Tickets. One asks the other how did you pick your 10 numbers. The second replied its how much he owed on one college semesters tuition. Very funny and scary too!
I am not a big fan of Lottery programs. They promise great things for education but the states schools have not gotten significantly better. Any of the lottery funded education $ have been counter balanced with a reduction in state funding from general revenues or at least thats how it looks to me. Net benefit is almost $0. A couple of people get instantly rich and often end up almost broke within 2-3 years. The companies and departments that run the Lotteries are the biggest beneficiaries. Many people who can not really afford to play spend way too much money on lottery tickets. It is different if someone with significant cash flow decides to spend $5 on lottery tickets for entertainment value.
College funding is really important and many people need some help with it.
We put together college saving strategies that work. It is a combination strategy, save more tax defer the interest earned, guarantee a reasonable rate of return on the funds committed.
Many times, we can also improve a families eligibility for college financial aid.
We can help!
www.columbusfinancialplanningpros.com
This cartoon has two college students looking at KENO Tickets. One asks the other how did you pick your 10 numbers. The second replied its how much he owed on one college semesters tuition. Very funny and scary too!
I am not a big fan of Lottery programs. They promise great things for education but the states schools have not gotten significantly better. Any of the lottery funded education $ have been counter balanced with a reduction in state funding from general revenues or at least thats how it looks to me. Net benefit is almost $0. A couple of people get instantly rich and often end up almost broke within 2-3 years. The companies and departments that run the Lotteries are the biggest beneficiaries. Many people who can not really afford to play spend way too much money on lottery tickets. It is different if someone with significant cash flow decides to spend $5 on lottery tickets for entertainment value.
College funding is really important and many people need some help with it.
We put together college saving strategies that work. It is a combination strategy, save more tax defer the interest earned, guarantee a reasonable rate of return on the funds committed.
Many times, we can also improve a families eligibility for college financial aid.
We can help!
www.columbusfinancialplanningpros.com
Annuity VS Bank CD
5.o% Five Year Guaranteed (years 1-5) 5.25% Seven Year Guaranteed (years 1-7) 5.45% Ten Year Guaranteed (years 1-10) According to USA Today on August 5th the consumer Bank CD rates are 2.29% on a one year CD and 3.46% on a 5 year CD Bankrate.com on August 6 shows the following rates 3.5% one year CD rates 4.2% five year CD rates In either case the SPDA rates look really good by comparison. If you are tired of low rate paid by your bank on the money you let them use we have an alternative! how can We help you? www.columbusfinancialplanningpros.com |
Monday, August 4, 2008
Loans Without Banks
There are several internet site that help structture small to medium sized loans with the use of a bank. The concept is called "Peer to Peer Lending" This can be used for family loans or other network members to loan you money. Its an interesting concept! Some people can not get a bank loan and sometimes the bank rates are just too high to be realistic. These Peer to Peer loans can have competitive rates for the borrowers and improve on the money earned by the lender on the loan. There are almost certainly some risks as well that need to be taken into account. I do not know anyone who has ever tried these programs. I do know of business funding that has been done by Angel Investors. From a business standpoint I do know businesses that have used this informal Angel network to get operating funding or cash to expand when banks will not write the loans. I even used one almost 10 years ago when we were working to acquire a business.
You can learn more about the program through any of these three websites.
US.ZOPA.COM
PROSPER.COM
VIRGINMONEYUS.COM
Our website is
www.columbusfinancialplanningpros.com
You can learn more about the program through any of these three websites.
US.ZOPA.COM
PROSPER.COM
VIRGINMONEYUS.COM
Our website is
www.columbusfinancialplanningpros.com
Friday, August 1, 2008
401 K Cartoon
Stahler is a great cartoonist who draws on life events for the Columbus Dispatch. This one appeard on July 29th 2008. Like the Doonsbury cartoon strip and the Dilbert cartoon strip they all draw on the corporate quirks, and political mismanagement in wonderful satire. I keep particularly pointed cartoons to remember painful or very funny life lessons. This is a painful life lesson! Painful lessons repeat themselves until you learn from them and CHANGE something. Id like to share this one.
First lets set the stage. Scene one Cinderella was riding to the
ball with her glass slippers beautiful retirement ball gown, riding in a golden horse drawn carraige. You all get the picture. It was not that long ago.
Now to the present!
The retirement is a mess the clothes are in tatters, Cinderella is dizzy and has lost her shoes . The golden carriage has turned into a very small pumpkin called 401K. If that is your Cinderella story we should talk!!
Business and individual plan help is available. Growth without risk is a possible option. How can we help you???
www.columbusfinancialplanningpros.com
First lets set the stage. Scene one Cinderella was riding to the
ball with her glass slippers beautiful retirement ball gown, riding in a golden horse drawn carraige. You all get the picture. It was not that long ago.
Now to the present!
The retirement is a mess the clothes are in tatters, Cinderella is dizzy and has lost her shoes . The golden carriage has turned into a very small pumpkin called 401K. If that is your Cinderella story we should talk!!
Business and individual plan help is available. Growth without risk is a possible option. How can we help you???
www.columbusfinancialplanningpros.com
Health Insurance
Basck in May we commented in the blog about the irresponsible posturing of a health insurtance carrier try to force insurance customers to pressure their doctors, or to switch doctors because of a contract dispute with health insurance providers. You can see the original blog string in our archives for May 2008 on this site.
Obviously the Ohio State Insurance Commissioner has agreed that this was not responsible behavior but was part of a business tactic not in the insured patients best interests. The State took action and justifiably so. They fined United health $250,000 for their actions. enough said and case closed!
Obviously the Ohio State Insurance Commissioner has agreed that this was not responsible behavior but was part of a business tactic not in the insured patients best interests. The State took action and justifiably so. They fined United health $250,000 for their actions. enough said and case closed!
Financial Crunch Hiitting Seniors
There was a great article that I just came across. I meant to include it in my blog over a week ago. My apologies for the delay in commenting on it. The article by Steve Wartenberg appeared in the Columbus Dispatch on july 20th, 2008. Many of you already know the financial difficulty he speaks about that is hitting seniors. In fact it is significantly impacts most of us. It is especially hard for those of us who are not at the peak of their earning years. It hurts the seniors most because of fixed incomes, The surplussed generation being discarded by irresponsible corporate management, and the young just starting out.
In any period of rapid price increases, like 2008, without a rapid rise in income much of the population is going to get creamed by the inflationary spiral of rising gasoline, rising home energy prices rising food prices etc. The article talks about the increasing percentage of bankruptcies that are filed by seniors over age 55. The percentage has actually doubled since 1991. General filings are up almost 18 % in 2008 alone. Inflation is eating them out of house and home!! Then there is the impact of medical expenses which another study not mentioned in this article indicated is responsible for almost 45 % of bankruptcies in the US.
If you know someone who is struggling let them know that seniors over age 62 years old who own their own homes may be able to get some relief. It might be possible to reduce their home expenses and even free up some of their income to help pay for unexpected medical expenses or repairs.
In many cases we Can help.
www.columbusfinancialplanningpros.com
In any period of rapid price increases, like 2008, without a rapid rise in income much of the population is going to get creamed by the inflationary spiral of rising gasoline, rising home energy prices rising food prices etc. The article talks about the increasing percentage of bankruptcies that are filed by seniors over age 55. The percentage has actually doubled since 1991. General filings are up almost 18 % in 2008 alone. Inflation is eating them out of house and home!! Then there is the impact of medical expenses which another study not mentioned in this article indicated is responsible for almost 45 % of bankruptcies in the US.
If you know someone who is struggling let them know that seniors over age 62 years old who own their own homes may be able to get some relief. It might be possible to reduce their home expenses and even free up some of their income to help pay for unexpected medical expenses or repairs.
In many cases we Can help.
www.columbusfinancialplanningpros.com
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