Safe Money Advisory ArchiveListed below are the past issues of Safe Money Advisory. These were written with the cautious and conservative who cannot afford to take losses because they are at or near retirement and don’t have time to recover from financial setbacks. They address topics of general interest, give solutions to problems faced by ordinary Americans, and are written for easy understanding. Receive the Safe Money AdvisoryWant to receive the latest Safe Money Advisories for free via email? Then click here to sign up now! August 2010 - Market Myths that Sway InvestorsAs this is being written, the market is surging upward by 200 points – this comes after a matching downward spiral a few days before. Some sages say the market’s headed higher while other pundits say lower: my position is “you know, you never know”. The recent movements in the market are stomach churning for those in retirement’s red zone or already retired. This group is tired of speculating, too short on time to recover from another meltdown and fearful of outliving their money. Notwithstanding these concerns, the risk averse stays in the market because those benefiting by investing other people’s money have used myths to keep them there. Let’s review several myths used to keep you coming back or stop you from leaving. CLICK FOR FULL REPORTJuly 2010 - When Will the Next Big One Arrive?History always repeats itself – never exactly, but enough to make certain that periodic interruptions are a way of economic life. What is the next big event? The economic disruption that again rips the heart out of your retirement takes away your lifestyle, undermines the value of your money, fosters market losses you can’t afford or threatens your economic well-being! We don’t know what it will be, when it will come, how big, how long or the exact effect, but we know for certain it is coming. CLICK FOR FULL REPORT June 2010 - Don't Follow the Herd: A Book ReviewRemember when your parents told you to think for yourself and avoid giving in to peer-pressure? Yet, when we reach adulthood this sage advice is forgotten as we follow the herd when it comes to managing our retirement money. We listen to the loud voices of Wall Street screaming “we manage everyone’s money and we should manage yours”! This incessant message is blaring in TV and radio commercials, ever-present in newspaper and magazine advertisements and delivered to homes daily via direct mail. CLICK FOR FULL REPORT May 2010 - Are you Prepared for the Higher Taxes of 2011?The Bush Administration tax cuts implemented from 2001-2006 will sunset in 2011. Unless Congress acts, the New Year will bring higher personal tax brackets, steeper taxes on capital gains & dividends, re-instated estate taxes and other tax bites out of your retirement lifestyle. Furthermore, several other new taxes will be added over the next few years and a dollar paid in taxes is one dollar less for your retirement. So, what is your plan to protect your retirement money? Here are some ideas to ponder before 2011... CLICK FOR FULL REPORT April 2010 - Stress Testing Your Retirement PlansAuto companies test cars by crashing them into concrete barriers, driving at high speed in extreme temperatures and deliberately trying to break them. They analyze the results and engineer around weak parts and problems. Testing in extreme conditions improves performance and adds to safety. This same principle applies to retirement plans. CLICK FOR FULL REPORT March 2010 - Roller Coasters and Other Retirement Rides“The market” has made a spectacular recovery in the past 12 months. The closely watched Dow Jones Industrial Index (“DJIA”) rose from 6,547 in March 2009 to 10,550 in March 2010 – an astounding 61% rise. The previous high was 14,165 in October ‘07 – meaning the March ‘09 low reading was 54% below the ‘07 peak. A gain of 61% following a loss of 54% punctuates the volatility, and risk, of the market. Nevertheless, the loud voices of Wall Street are shouting bull market, prices have recovered and this is where your retirement money belongs. Let’s take a closer look. CLICK FOR FULL REPORT February 2010 - Can You Earn 16% Annually Risk Free?I recently was presented an opportunity to earn a 16% annual return with only “modest risk”. The investment was called a “fractionalized life settlement” and the sales pitch was compelling… but I’m wondering if the risk is “modest”. This investment is fractions of the death benefits from life insurance policies on strangers. These policies were sold because the policyholder (insurer) no longer needed, wanted or could afford to pay the required policy premiums. The policies were not surrendered for their cash values, because the “present value” of the death benefits is worth more to Life Settlement Companies that could repackage them for ... CLICK FOR FULL REPORT January 2010 - Making Your Retirement Money LongWhat will you do if you run out of money during retirement? What are the consequences if your surviving spouse doesn’t have enough money? These serious questions are reality for many retirees. Nonetheless, the fear of running out of money has not kept many retirees from speculating with their retirement money. Much of this “speculative mentality” is driven by ... CLICK FOR FULL REPORT December 2009 - Ten Biggest Misconceptions about Fixed AnnuitiesNo other savings vehicle is as misunderstood, under appreciated and maligned as fixed annuities. Most people who can benefit from annuities have been bombarded by misinformation, biased opinions and outright lies. The truth is: fixed annuities are safe because they are guaranteed by insurance companies, a great place to keep retirement money because they pay tax-deferred competitive returns, and all of your money is working 100% of the time ... CLICK FOR FULL REPORT November 2009 - The Dangers of Investing for a Lifetime IncomeMany retirees live on income from their portfolio of stocks, bonds, mutual funds and other market-related securities. On October 09, 2007, the market [as measured by the DJIA] peaked at 14164.53 and then started a dramatic decline until March 09, 2009, when a trough of 6547.05 was reached. This 53.8% shrinkage played havoc with retirees’ portfolios and forced many back to work or slimmed down their lifestyles. If you had $500,000 at the peak and were withdrawing $25,000 [5%] annually to support retirement, the same withdrawal of dollars at the trough amounted to 10.82%. This alarming ... CLICK FOR FULL REPORT October 2009 - Two Back and One ForwardThe Great Recession has probably thrown your investments in reverse, and you’re hoping to soon “get back to break even”. Not only may this be wishful thinking, it is probably bad strategy – because this is the exact strategy that got you to the bottom in the first place. What’s more, your investments – and the market – may not cooperate by coming ... CLICK FOR FULL REPORT September 2009 - Some Myths Never DieYou get a call from your broker or someone else that wants you to invest money. You’re told that you can expect a double-digit return and there is no risk. No doubt the “sales pitch” will be more subtle but the proposition is the same: above-market return with low or no risk. The one immutable law of investing is ... CLICK FOR FULL REPORT August 2009 - Required Minimum Distributions vs Roth IRAAs you are painfully aware, the before-tax money you’ve put away for retirement, and which has been growing tax deferred, has a co-owner: Uncle Sam. The tax laws say you must start withdrawing and paying taxes on this money... CLICK FOR FULL REPORT July 2009 - All About Reverse MortgagesReverse Mortgages are currently the hottest part of the real estate market, especially for retirees. It is an option you need to know about. Here are the requirements: you must be at least age 62 and own a home in which you have equity. Let’s immediately dispel the common misconceptions about Reverse Mortgages: your retirement benefits and Social Security will not be affected; there is no danger of foreclosure from... CLICK FOR FULL REPORT June 2009 - Retirement Money: Better Tall or Long?Most of us measure our retirement money by how "tall" it is rather than how "long" it is. It's not how much money you've got that's important, but how long it will last. Because of uncertainties like inflation, taxes, investment losses, emergencies and more, retirees don't know how long they might live; thus, it is hard to determine how long the "tall money" will last. CLICK FOR FULL REPORT May 2009 - Issue 4: Social Security for Retirement: Will it be there?Outliving their money is the greatest fear of most retirees. Because of massive market losses since 2007, high and rising medical costs and more taxes & inflation as fallout from the unprecedented federal deficit spending, retiree fear is at an all-time high. But for the stronger gender, females, it is especially alarming, because they are... CLICK FOR FULL REPORT May 2009 - Issue 3: Guaranteed Retirement Option for WomenThere has been a lot in the press recently about the solvency of Social Security and how it could go broke by 2016. Seniors and late boomers are concerned about their future Social Security benefits and want answers. The following will shed some light on the matter. CLICK FOR FULL REPORT May 2009 - Issue 2: Near Retirement? You Can Have a Guaranteed Lifetime IncomeMany Americans of yesteryear relied on employers to provide a defined benefit pension at retirement. They were guaranteed a lifetime income whose amount was based upon how long they worked for the employer and their ending salary. For example, a defined benefit pension plan might pay a retired worker 2% of their last year’s salary for every year over twenty they worked for the employer. This meant a 40-year employee could... CLICK FOR FULL REPORT May 2009 - Issue 1: Rolling Over Retirement Money: Good or Bad?When leaving an employer at retirement, changing jobs, down-sizing or starting your own business, leave behind only what belongs to your ex-employer. That means not forgetting your retirement plan money! About forty percent of departing employees, ages 60 to 65, leave their retirement money behind in former employers' plans. They cite several reasons... CLICK FOR FULL REPORT April 2009 - Outliving Your Money in RetirementThe greatest fear of most retirees is the risk of longevity: outliving their money. The meltdown of retirement accounts, rising medical costs, uncertain entitlement programs and higher taxes have added to the risk. Facing 30 years of retirement living on past savings and Social Security benefits is a scary reality. What can be done? CLICK FOR FULL REPORT March 2009 - Caution: Retirement ZoneWe've spent our adult life working for retirement. We've scrimped, cut corners, saved and managed our savings so we can enjoy a secure retirement. Mostly, we've avoided bad investment choices. The dot.com bust in 2000-02 and the market meltdown of 2007-09 were big setbacks, but we've survived. We've made it this far with... CLICK FOR FULL REPORT February 2009 - Many Plan a Market Exit But...If you have money invested in the market, chances are very high that you have a loss. In talking to savers and investors like you, I’m amazed that they all tell me the same thing: "As soon as my investments get back to where they were, I’m getting out of the market". Let’s give some thought to this exit strategy... CLICK FOR FULL REPORT January 2009 - What's Your Biggest Retirement Worry?Your biggest worry about retirement is probably that you'll run out of money before you run out of breath. For the past two years, I have been surveying boomers and seniors and over fifty percent have voiced this fear. These same surveys also tell me "why" your greatest worry may be well-founded. The good news is that outliving your money is preventable if you'll do a few simple things. Let's see how... CLICK FOR FULL REPORT |
 |
Register now! to reserve your seat for our next free retirement planning webinar.
The Forgotten Safe Money OptionDate: 09/16/2010 03:00 PM Previous webinar: When Will the Next Big One Arrive? Ask Us AnythingWe can help. Have questions? Call or email. Fitch Wealth Management Group
fitchwealth@retirerx.com 
|
