Financial Action Steps For 2009
2008 was a tough year Americans as the market fell over 30% to crush retirement savings for most investors. (Fortunately none of our clients lost one dime thanks to the guarantees we have!) Although the Dow has had a recent rally most experts say that it will drop another 30-40% into the 5000-6000 range this year.
The undeniable reality: The debt crisis that first appeared in the U.S. subprime mortgage market … then precipitated a Wall Street meltdown … and has now driven the American economy into its sharpest decline since the Great Depression … has now spread to the entire world. It is driving the economies of Western Europe and Japan into an unprecedented tailspin. It threatens the economic — and potentially political — stability of Russia, China and several emerging market nations. And it’s setting the stage for a global depression of epic dimensions.
If you are determined to take control of your finances in 2009 here are 5 simple steps you can take:
ONE: Maintain Liquid Reserves. You need to have at least 6 months of liquid reserves available. If you are contributing to a 401k , IRA, Roth or other retirement account and you do not have liquid reserves in a savings account stop contributing to your retirement accounts and build your savings up first. You will incur stiff penalties from the IRS if you need to cash out your retirement plan before age 59½. Here is a link to Dollar Savings Direct. They have a 4% APR savings account with no fees and no restrictions. This is the highest return for a savings account available right now.
TWO: Eliminate Market Risk from your IRA/ROTH/SEP/401k/403B and position the funds for growth from market rebounds. You never have to take market losses again. Use one of our safe accounts with no fees and a guaranteed 19% first year for our 10-year retirement account. (Available through January 31st, 2009) Most of our client’s accounts have at least DOUBLED over the last 10 years.
THREE: Get Out of Debt. Most people think you need big chunks of money to get out of debt. We have a simple system that can help you get mortgage and debt free in 1/3 to ½ the time with little to no change in your spending habits. We can run your numbers for free and show you how it works.
FOUR: Fund a Tax-FREE Side Account. If you are looking to put money away we can show you how to grow your money tax free and access your money tax free as well. All funds are guaranteed against market losses. And if you use our debt management program we can show you how to create a fortune in tax free income using your idle home equity and be mortgage free when you get to retirement.
FIVE: Consider converting your IRA’s to ROTH IRA’s. If you have already lost money in your IRA, it may be a good time to take the losses and convert. We can show you how to do this without having a big cash outlay for taxes. (We can even show you how to get the taxes paid.) Roth’s grow tax free and are tax free on the way out. This is big. Pay a small amount of taxes now and pay none down the road! Also a ROTH requires no minimum distribution so you never have to take money out even after 70.5 and the funds pass tax free to your heirs.
Be determined to take control of your finances in 2009! Call me and set up a free consultation. With the Dow expected to fall another 30-40% and the economy slowing down now is the perfect time to take action before it is too late. My direct line is (480) 970-5663.
Sincerely,
Denver Nowicz
Owner – Equity4Profit
480-970-5663
EMAIL
P.S. Remember we have 19% guaranteed first year return for IRA, ROTH, SEP, 403b, 401k Rollover through January 31st, 2009 for our 10 year account.
P.P.S. We also have 4.85% fixed on our short term account. Great alternative to the 5 year CD.
