The Bank around the corner won't pay you an interest rate above maybe 2 percent. Unfortunately that does not even keep up with the inflation rate (CPI) which recently has been running around 2.5-3.5%
If you could guarantee a 1% annual interest rate with the potential to earn several times as much would that be of Interest to you? In todays market is it possible to beat inflation?
Bankrate,com today showed 5 yr CD rates from 0.6% up to 2.05%
If your not happy with those rates and no upside potential let us know!
We are talking FDIC insured deposits, moderately high minimums and typically a 7 year term.
If you are not in need of FDIC Insurance and are interested in 6% with a non bank rate let us know!
Financial alternatives are out there with low risk. One should always maintain diversification in their financial portfolio. Not all products are suitable for all clients! Not all products are liquid as fees may apply for early withdrawal or surrender.
Showing posts with label CPI. Show all posts
Showing posts with label CPI. Show all posts
Monday, September 16, 2013
Wednesday, October 31, 2012
When Can I Retire??
While reviewing some financial industry publications today I came across something somewhat frightening. It was an article quoting a study done by a group called My New Financial Advisor (MNFA). The purpose of the study was to look at Baby Boomers facing retirement and tried to determine what age they would reach before they are able to Retire. First let me say that the study was relatively modest in size but the findings are still Disturbing and Frightening. I might say this is rather fitting on Halloween night!!
The survey was conducted by collecting data on 1600 Baby Boomers. They concluded that many Boomers due to the following six factors; a Loss of Income, Insufficent Savings, Low Rates of Return on Their Retirement and Other Financial Assets, Higher Than Expected Expenses, High Taxes, and A Low Rate of Growth In Personal Income will have to postpone their retirement till their mid 70's. Is that frightening enough for you? I don't know about you but I don't want to HAVE TO Work until I am in my mid 70's. Now, I'm not saying working until age 70-76 is a bad thing! In fact, for many people thats a good thing. I am saying that I would hope that if you are still working until you are almost 80 years of age that it is because YOU WANT TO, NOT BECAUSE YOU HAVE TO!!
START TODAY!
Squeeze your expense budget, use the money saved to increase retirement savings. Look for SAFE Money Financial alternatives that produce a reasonable rate of return. Guarantees of up to 6% in the growth of Income Account Value, when used for Lifetime Income, are available today. This can be done without market risk today! The "Without Market Risk" is a big deal since retirees or near retirees cannot afford the market lossses most have seen in the past 10-12 years. Getting Back to Even is not good enough. Where do you currently have your Safe Money?
I believe it was Warren Buffet who said there are two rules in financial management.
Rule 1 Don't Lose Money!
Rule 2 NEVER FORGET RULE 1!
If you don't believe we have significant risk today. What about Europe? What about our out of control Federal deficit? Where are we going to get the money to pay for it? Expect increased Taxes! Ever hear of the terms The Fiscal Cliff, or Double Dip Recession. What about the increasing cost of everything you need to buy in the Consumer Price Index (Inflation Risk)?
Polaris Financial Services
614-264-3864
The survey was conducted by collecting data on 1600 Baby Boomers. They concluded that many Boomers due to the following six factors; a Loss of Income, Insufficent Savings, Low Rates of Return on Their Retirement and Other Financial Assets, Higher Than Expected Expenses, High Taxes, and A Low Rate of Growth In Personal Income will have to postpone their retirement till their mid 70's. Is that frightening enough for you? I don't know about you but I don't want to HAVE TO Work until I am in my mid 70's. Now, I'm not saying working until age 70-76 is a bad thing! In fact, for many people thats a good thing. I am saying that I would hope that if you are still working until you are almost 80 years of age that it is because YOU WANT TO, NOT BECAUSE YOU HAVE TO!!
START TODAY!
Squeeze your expense budget, use the money saved to increase retirement savings. Look for SAFE Money Financial alternatives that produce a reasonable rate of return. Guarantees of up to 6% in the growth of Income Account Value, when used for Lifetime Income, are available today. This can be done without market risk today! The "Without Market Risk" is a big deal since retirees or near retirees cannot afford the market lossses most have seen in the past 10-12 years. Getting Back to Even is not good enough. Where do you currently have your Safe Money?
I believe it was Warren Buffet who said there are two rules in financial management.
Rule 1 Don't Lose Money!
Rule 2 NEVER FORGET RULE 1!
If you don't believe we have significant risk today. What about Europe? What about our out of control Federal deficit? Where are we going to get the money to pay for it? Expect increased Taxes! Ever hear of the terms The Fiscal Cliff, or Double Dip Recession. What about the increasing cost of everything you need to buy in the Consumer Price Index (Inflation Risk)?
Polaris Financial Services
614-264-3864
Wednesday, September 16, 2009
Inflation rearing its ugly head - What should you do about it?
There are several things every investor or saver needs to keep in mind as we move forward. Over the past 18 months inflation has been at above average levels it actually peaked at 5.6% back in July 2008. That represented a 17 year high. But even though it has dropped since then there are 8 months with a rate at or above 4%. The statistics show a 3.8% inflation rate for the CPI for all of 2008. Obviously we don't yet know the total inflation rate in the CPI for all of 2009. That means that any one using a bank for a safe money resting place has actually lost money while searching for a Safe Money Haven. Banks are still failing and they are still Failing to pay you a fair rate of return on the money you place in the bank at the same time they are charging a Record high rate on the money they loan out.
There are excellent Safe Money alternatives that can provide a better rate of return with excellent safety. They can even include upside potential if the market climbs while offering protection from market declines. Ask us how this can work and fit into your financial strategy
for the future. Non Bank Financial Alternatives still make excellent sense today. Protection from market risk makes just as much sense today as it made one year ago. We can help on both counts!
Are you interested in a Second Opinion about you financial nest egg. We can provide you with a no charge Second opinion and also help you position some of your assets in excellent safe money financial alternatives.
There are excellent Safe Money alternatives that can provide a better rate of return with excellent safety. They can even include upside potential if the market climbs while offering protection from market declines. Ask us how this can work and fit into your financial strategy
for the future. Non Bank Financial Alternatives still make excellent sense today. Protection from market risk makes just as much sense today as it made one year ago. We can help on both counts!
Are you interested in a Second Opinion about you financial nest egg. We can provide you with a no charge Second opinion and also help you position some of your assets in excellent safe money financial alternatives.
Thursday, September 11, 2008
Struggling with Finances
An article this week in the Columbus dispatch make me think about all of the seniors out there struggling to pay the energy bill their gasoline bill their RX costs and even their food bills. On a fixed income this has got to be a very difficult year. Inflation in the Consumer Price Index is now 6%. The cost of fuel is up 100% in two years. Heating and air conditioning costs are expected to be up between 30 and 50 % this year alone.
What is a retired couple to do? Here are a list of things to consider beyond using less heat and air conditioning energy, considering more energy efficient appliances, using CFL light bulbs wherever possible, buy a more fuel efficient car and consolidate your trips. and shopping for bargains at the grocery store and buying generic medications if available and if you doctor believes it will be ok for you.Once you have considered these things lets look at the next steps.
1.Where is you emergency money kept? What interest rate are you currently earning? If less than about 3% you are making a mistake.
2.Next level are you parking some money in a bank CD? What interest rate are you earning? If you are making less than about 5% you could be making more!
3.Where have you positioned most of your retirement or long term assets? Have you every lost money where you are currently parking you growth assets? Do you have less assets there today than you did in 2006 or in 2007? Would you like to stop the bleeding in your financial assets or at least protect some portion of those assets from market risk? Would you be interested if you knew that you could earn a guaranteed 6-7.2% rate of growth in your income account value each year over a ten year period and still retain reasonable access to those funds with penalty free withdrawals meeting certain conditions? Would you like to be able to create a lifetime income stream with some portion of your total assets? If you have answered yes to one or more of these questions we should talk about a safer financial alternative strategy.
4. Do you need to significantly reduce your expenses and improve cash flow? Are you still making mortgage payments? Are you and your spouse if married both over age 62 years of age?
Are you willing to reallocate assets to improve your financial conditions? Would you like to arrange an initial no fee consultation to assess your current situation and determine if we could help you improve your financial health. How can we help you?
www.columbusfinancialplanningpros.com
polarisfinancialservices@gmail.com
What is a retired couple to do? Here are a list of things to consider beyond using less heat and air conditioning energy, considering more energy efficient appliances, using CFL light bulbs wherever possible, buy a more fuel efficient car and consolidate your trips. and shopping for bargains at the grocery store and buying generic medications if available and if you doctor believes it will be ok for you.Once you have considered these things lets look at the next steps.
1.Where is you emergency money kept? What interest rate are you currently earning? If less than about 3% you are making a mistake.
2.Next level are you parking some money in a bank CD? What interest rate are you earning? If you are making less than about 5% you could be making more!
3.Where have you positioned most of your retirement or long term assets? Have you every lost money where you are currently parking you growth assets? Do you have less assets there today than you did in 2006 or in 2007? Would you like to stop the bleeding in your financial assets or at least protect some portion of those assets from market risk? Would you be interested if you knew that you could earn a guaranteed 6-7.2% rate of growth in your income account value each year over a ten year period and still retain reasonable access to those funds with penalty free withdrawals meeting certain conditions? Would you like to be able to create a lifetime income stream with some portion of your total assets? If you have answered yes to one or more of these questions we should talk about a safer financial alternative strategy.
4. Do you need to significantly reduce your expenses and improve cash flow? Are you still making mortgage payments? Are you and your spouse if married both over age 62 years of age?
Are you willing to reallocate assets to improve your financial conditions? Would you like to arrange an initial no fee consultation to assess your current situation and determine if we could help you improve your financial health. How can we help you?
www.columbusfinancialplanningpros.com
polarisfinancialservices@gmail.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
Monday, July 21, 2008
Can you still retire
In friday July 11 issue of USA Today there was a good article about retirement written by Kathy Chu. The article talks about retirement and determining if your assets are adequate to last as long as you live in retirement. Although it is a good article thare are some key points missing and we will get to them in this blog entry. Kathy makes a number of excellent points about how important the early years are in permitting the asset base to grow and the terrible detrimental effect a couple of bad early years can have on your ability to have enough money to get through many years of retirement. She also shares the traditional rule of thumb that says take out no more than 4-5% of the assests per year if you want to maximize the length of time the assets will remain. She also talks about adjustments to withdrawals in the rule of thumb during one or more bad years.
It talks about postponing retirement if your assets need more time to grow and postponing Social security to get some additional monthly income. She adds that it is important to keep assets positioned in such a way that you have the ability to out perform the inflation rate. there are a number of references to food prices, gas prices, energy costs and healthcare costs. We all know the impact that each of those is having on our budget.
She also mentions diversification of assets and asset allocation strategies. All of these are good things but nowhere does she talk about the single thing that a boomer or retiree can do that will guarantee that the retirement asset pool will never run out as long as you live. She acknowledges that inflation adjusted pensions like Social Security are a good thing but she fails to tell the readers that they can create that for themselves with their own assets. This is something everyone with assets should be doing with at least a significant percentage of their retirement assets and their general assets.
The key points in the strategy we recommend are the following. Position a majority of your assets where there is NO risk of market loss due to economic market turbulence. Lock in each years gains protecting them from downturns in subsequent years. When possible shelter your assets during the growth mode from current income taxes. Deferred income taxes allow you principal and your previous years earning growth to continue to grow without creating a tax liability that you have to pay off when you file your annual taxes. You need to insure that your assets have the opportunity to grow at a rate that can beat the rate of inflation consistently. Remember that this year the Consumer Price Index (CPI) has risen at a rate of 5%. This is the highest CPI adjustment in a number of years. The products we are talking about do usually have early surrender charges on a sliding scale. These can be 10-15% but you have control over when you take the money out. Many clients never have to pay a surrender charge at all. By timing your withdrawals to the surrender charge free withdrawal schedule you can almost always avoid paying any fees at all! You are in control! Finally do all of these things usually without a collection of annual fees and charges that typically run 2% or more of total assets per year. Remember that if you hold those types of assets for 20 or 30 years the fees continue to add up and may have generated total fees that cost you an amount equal to 40-60% of your initial contribution. These fees certainly will reduce the asset value that you get to keep or walk away with.
What single product can and has consistently met all of these criteria? The answer isn't found at your bank and isn't generally offered through your local broker. There is only one type of product that offers all of the positive things discussed and doesn't have the annual fees and charges listed above. The products we are talking about are long term saving vehicles. Only Fixed indexed Annuities do all of the positive things listed above and usually, avoid the annual fees on the downside. When you do add a rider to a fixed Indexed Annuity the maximum rider charge is usually 1/2 of 1% or less. There are currently products that will guarantee an increase in Income Account Value of up to 7.2% per year. This doubles your income every 10 years and quadruples your assets in 20 years. When you do decide to begin withdrawing income from the product you can create a Lifetime Income Stream that you cannot outlive.
We can help!
polarisfinancialservices@gmail.com
www.columbusfinancialplanningpros.com
I
It talks about postponing retirement if your assets need more time to grow and postponing Social security to get some additional monthly income. She adds that it is important to keep assets positioned in such a way that you have the ability to out perform the inflation rate. there are a number of references to food prices, gas prices, energy costs and healthcare costs. We all know the impact that each of those is having on our budget.
She also mentions diversification of assets and asset allocation strategies. All of these are good things but nowhere does she talk about the single thing that a boomer or retiree can do that will guarantee that the retirement asset pool will never run out as long as you live. She acknowledges that inflation adjusted pensions like Social Security are a good thing but she fails to tell the readers that they can create that for themselves with their own assets. This is something everyone with assets should be doing with at least a significant percentage of their retirement assets and their general assets.
The key points in the strategy we recommend are the following. Position a majority of your assets where there is NO risk of market loss due to economic market turbulence. Lock in each years gains protecting them from downturns in subsequent years. When possible shelter your assets during the growth mode from current income taxes. Deferred income taxes allow you principal and your previous years earning growth to continue to grow without creating a tax liability that you have to pay off when you file your annual taxes. You need to insure that your assets have the opportunity to grow at a rate that can beat the rate of inflation consistently. Remember that this year the Consumer Price Index (CPI) has risen at a rate of 5%. This is the highest CPI adjustment in a number of years. The products we are talking about do usually have early surrender charges on a sliding scale. These can be 10-15% but you have control over when you take the money out. Many clients never have to pay a surrender charge at all. By timing your withdrawals to the surrender charge free withdrawal schedule you can almost always avoid paying any fees at all! You are in control! Finally do all of these things usually without a collection of annual fees and charges that typically run 2% or more of total assets per year. Remember that if you hold those types of assets for 20 or 30 years the fees continue to add up and may have generated total fees that cost you an amount equal to 40-60% of your initial contribution. These fees certainly will reduce the asset value that you get to keep or walk away with.
What single product can and has consistently met all of these criteria? The answer isn't found at your bank and isn't generally offered through your local broker. There is only one type of product that offers all of the positive things discussed and doesn't have the annual fees and charges listed above. The products we are talking about are long term saving vehicles. Only Fixed indexed Annuities do all of the positive things listed above and usually, avoid the annual fees on the downside. When you do add a rider to a fixed Indexed Annuity the maximum rider charge is usually 1/2 of 1% or less. There are currently products that will guarantee an increase in Income Account Value of up to 7.2% per year. This doubles your income every 10 years and quadruples your assets in 20 years. When you do decide to begin withdrawing income from the product you can create a Lifetime Income Stream that you cannot outlive.
We can help!
polarisfinancialservices@gmail.com
www.columbusfinancialplanningpros.com
I
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