That’s ok because we can use this to our advantage and create a fortune in retirement income.  Over the last 12-18 months many of my clients have seen permanent gains in the 20% to 50% range because of a built in strategy that allows you to capture market rebounds while the funds are guaranteed against market losses.

This is achieved by a special feature called “Annual Reset”.  Here’s how it works:

Example – You start with $100,000 in 2008.  The Dow is at 10,000.

From 2008 to 2009 the Dow drops 40% to 6,000.  You still have $100,000.

Now from 2009 to 2010 the Dow shoots back up 40% to 8400. You net $138,000. (Insurance company takes 2% of the gain.)
 

While most people are still trying to get back to even, you pocketed a big gain. This gain is permanent and cannot be lost in future years due to market downturns.

I have posted a statement showing how one of my clients has been able to capture the market rebound over this last year.  Here is the link:

2010 Client Returns

Look this one over and call me to set up a free consultation at my office in Scottsdale.  I can show you more real results when you come in.

It is important to do this as soon as possible. If the market was bad for you over the last 10 years, just wait until the next 10 years. Protection is common sense.

 The article is titled “Computerized stock trading leaves investors vulnerable”.  As you’ll see “vulnerable” is an understatement. Here is the full article as well as some highlights below:

http://www.azcentral.com/business/articles/2010/07/09/20100709computerized-stock-trading-leaves-investors-vulnerable.html

Highlights: 

• The day the Dow Jones industrials plunged nearly 1,000 points and then recovered in Wall Street’s most volatile half-hour ever, more than 19 billion transactions moved according to regulators.
• The time it takes to read this sentence is all it takes for nearly 2 million stock trades to flash through the stock market.
• Trades are coming from an army of computers programmed to obey complicated algorithms that are hyperactively buying and selling.
• These machines see stocks not as securities used by companies to raise money, but rather, symbols, numbers and bits that are traded, swapped and exchanged. 
• More than half of the market’s volume is churned by computers programmed to spot certain patterns in trading. 
• And now, traders say, humans are responding to machines rather than the other way around. 
• More and more the machines are reacting to each other, trying to second-guess what their next moves might be on how to take advantage of an edge that might be gone in milliseconds. 
• “There are no real buyers or sellers,” says Joe Saluzzi, trader at Themis Trading. ”
  It’s all about the machines.” 
•   Perhaps most troubling is how computers are giving sophisticated investors with the best digital access to the markets a leg up over regular investors in ways modernization was supposed to do away with. Meanwhile, technological advances are making it nearly impossible for regulators, who play a critical role in maintaining a fair market, to monitor the system that by its very nature has no paper trail and buries transactions in mountains of data.

After you read this, you’ll see why it is so important to have your money guaranteed against market losses.  I can set this up for you. Call me directly at 480-970-5663.

Beginning in 2010, you can convert a traditional IRA to a Roth IRA regardless of income level or filing status. With a Roth conversion, the taxable portion of your traditional IRA (deductible contributions and earnings) is normally subject to tax in the year of conversion. However, a special rule applies to Roth conversions in 2010: half of the resulting taxable income is reported on your 2011 federal income tax return, and the other half on your 2012 federal income tax return, unless you elect otherwise.

Consider a husband and wife both 45 years old with 2 kids ages 12 and 14. They have an old 401k valued at $100,000. By converting it to a ROTH they would pay around $25k in taxes over the next 3 years to convert. Now the money is tax free for life.

Without converting and retiring at 65, the total taxes you will have paid by age 80 is projected to be $315,240.
$25,000 now or $315,240 later. There are of course other consideration and we have other ways to get your money tax free as well.

If you live in Phoenix or anywhere in Arizona call me and I can run this calculator and do the basic financial plan over the phone. We can also show you how to set up an unlimited ROTH regardless of the income you make. Denver Nowicz 480-970-5663

We can also help you grow your money TAX FREE. Many Arizona residents are unware they will be sending 30%-40% of their retirement income to the IRS. Setting up an unlimited tax free retirement account is available to anyone in the Phoenix area who knows this simple financial planning program. Our offices are located in Arizona and you can learn about our financial planning services here.

Loss of life: 0.9%
Loss of car due to auto accident: 1.2%
Loss of home due to fire, weather, etc: 1.3%
Loss of market value in retirement accounts: 28%

As you can see the loss of market value is the biggest risk. This statistic is based on the S&P 500 from 1959-2008.
Common sense would suggest you have a built in floor to protect you from market losses using the insurance products we suggest on my radio show.

What about upside? You may have heard you don’t gain a lot in these insurance contracts. This is simply a scare tactic used by the competition to keep you where you are at. I personally have clients that are up over 30% for the last 12 months. All with no risk of market losses.

Call me or email me with questions or to schedule a free consultation. My direct line is 480-970-5663.

Webpage: Where do banks invest their money?

Why? Back in the day, (before the mid seventies) most people had a pension. The pension was your guaranteed income. You did not have to worry about losing your money. You knew it would be there. This system worked very well until Wall Street decided it had a better plan for you…

Starting in the mid seventies, IRA’s and 401k’s were designed originally to supplement your pension NOT replace your pension. Wall Street quickly learned how much could be made by charging fees on these accounts – nearly half of your retirement income – according to a recent “60 Minutes” episode. Pensions were taken out of insurance products and invested in the market. Companies dropped pensions entirely and left it up to you to put your money at risk. Now, after over 30 years, most financial planners in Arizona simply sell stock and mutual fund portfolios. Unfortunately, this is why in 2008 Americans lost over $2 Trillion in their retirement accounts. Whether you live in the Phoenix area or elsewhere this financial planning strategy has failed.

It is already hard enough to save money. Most Americans simply cannot afford to lose money. Financial planning that puts your life savings at risk in the stock market is not appropriate and unnecessary for most people – whether you live in Arizona or anywhere in the U.S. Yet, when it comes to the Phoenix area, the financial planning advice most people are still getting is to keep their money in the market and hope the next decade will be better than the last.

Thankfully there is a time tested, proven financial planning strategy that is an alternative to what most financial planners in Arizona are offering. Before pensions went away or were lost in the stock market, they were nothing more than insurance products. Either annuities that grow tax-deferred or life insurance which grows tax-free. The insurance products of today provide the same or better rates of returns than that of mutual funds and stocks with the added benefit that they are guaranteed against market losses.

They do just what they have been doing for over 200 years in America…growing money and keeping it safe. At our office in the Phoenix area, financial planning with these vehicles has dramatically outperformed the average brokerage account by over 100% in some cases. You can learn more about this on the Safe Investing and Investing Tax Free sections of the website.

Now that you know there is an alternative to what most financial planners in Arizona are offering, only invest in the stock market with money you can afford to lose.
It still surprises me that most financial planners in Arizona don’t even offer these valuable safe accounts. As a result most people in Phoenix have lost money due to the financial planning provided to them.

If you live in the Phoenix area or anywhere in Arizona and have a financial planning question call me at my office in Scottsdale – 480-970-5663. If you are looking for financial planners and you are not in Arizona call me toll free at 1-877-970-5663. You can also visit our financial planners Arizona section of the website.

1.  Not looking at your retirement account statements.  Many people are afraid to look at their accounts because they don’t want to see how much they have lost….they also think what’s the point because they don’t know what else to do….and even if they did know what to do they are so far down they think they need to wait until the market comes back up to do anything.

2.  Not getting educated on the options available.  This is a tough for you because most of the information given out by financial advisors it flat wrong. (Just look at your retirement accounts for evidence of this.)  For a real independent, third party look at what you can easily do to eliminate market risk from your retirement accounts and grow them dramatically read “Blind Faith: Our Misplaced Trust in the Stock Market and Smarter, Safer Ways to Invest” by Edward Winslow. It is available at Amazon.com or come into the office for a free consultation and I’ll give you a copy to read. 

3.  Not taking control.  Most people feel they are at the mercy of the market. After you get educated you began to realize you do not need to play the “hang on it will turn around game.”  The most important thing right now is not the money in your account. It is protecting that money from future losses (which will probably be bigger this year than last year) and getting that money into positions that are going to make you money when the market goes up.
 

Here is an example of taking control: Our most popular long term account has 19% fixed guaranteed 1^st year.  If you stay where you are at and the market drops another 20% you have that much further to go just to get back to even. Instead you immediately recoup some of your losses and your funds our now positioned for market rebounds.  (When the market was rebounding in 2005-2006, we had clients getting 15-20% returns from the market.) Finally, you have also eliminated any further potential market losses.  Put simply, you keep your gains in the up years of the market and take none of the losses in the down years.  This is guaranteed in writing and administered by an A+ Superior rated company with $1.7 Trillion in assets under management and 80 million customers worldwide.Like most people, you are probably curious to see how this program actually works and if it appropriate for your situation.  Take some action and find out more.  I have been in business here in Scottsdale for over 10 years and have an “A” from the Better Business Bureau.  Call me at my office at any time.