Common Sense Strategies for
Successful Equity Management
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As you saw from my last blog – computers trading with one another accounts for half the volume of market. For the most part, nothing “real” is being traded and this creates the incredible volatility we see every other day.

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.

If you have sat down with a financial planner in Phoenix or anywhere in Arizona, the financial planner has proabaly told you about all the sophisticated computer modeling they use that is supposed to make you lots of money.  As it turns out, all the computerized financial planning strategies may make you much worse off.  If you have money in the market this could be the most alarming article you will read this year.  Please take a few minutes to read this article and share it with those you care about.  This could help you make a decision on protecting your life savings or the savings of someone close to you.

 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.

You can now listen to past episodes of our weekly radio show online! Check out http://equity4profit.com/taxfree to listen and learn how to create a fortune in tax free income without market risk!

If you are living in the Phoenix area and determined to take control of your finances in 2010 here are 5 financial planning steps you can take:

1. Maintain Liquid Reserves. Whether you live in metro Phoenix or anywhere in Arizona, 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.

2. 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 20% matching for our 10-year retirement account. Most of our accounts have more than double the value of the average account in Phoenix. A solid financial planning program should never lose money. Click here to find out how to grow your money with no risk of market losses.

3. Get Out of Debt. Phoenix residents have lost a lot of equity recently and your financial planning program should adjust for that. Most people think you need big chunks of money to get out of debt. We have a simple system that can help you pay off your mortgage early – in 1/2 to 1/3 the time with no change in spending. We can run your numbers for free and show you how it works.

4. 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 own your own business we can show you how to fund unlimited tax free accounts through your business. This is a financial planning strategy you will not get from other advisors in Phoenix. Click here to learn how to create Tax Free wealth for retirement.

5. 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 2010! If you have financial planning questions and live in the Phoenix area our office is conveniently located in downtown Scottsdale. Call us at 480-970-5663. You can also visit our financial planners Arizona section of the website.

I have been getting a lot of financial planning questions from the Phoenix area about IRA to Roth conversion.

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

1. Protect your reitirement accounts from market losses.
2. Automatically keep your gains when the market is up.
3. Get as much of your money growing TAX FREE as possible.
As no cost financial planners located in Arizona we can help you set up this simple approach…
Over the last 10 years we have helped Arizona residents with a no cost financial planning approach that will grow your money risk-free and provide maximum upside potential. The financial planning strategies we have used have dramatically outperformed the average Arizona brokerage account by over 100% in some cases.

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.

Check out the statistical probabilities that an event is likely to happen in an average year:

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.

One of the most popular financial planning strategies we are teaching people right now is how to be your own bank and grow your wealth tax free. The question has come up where do banks invest their money? Actually, the same place we suggest you use to start your own bank – tax free permanent life insurance contracts. The average financial planner in Phoenix will tell you life insurance is a bad investment. You might be surprised to know that banks invest the largest percentage of their vital cash reserves in life insurance contracts. So we put money in banks, they put their money in life insurance contracts. I recently created a detailed web page showing why you should skip the middleman (aka the banks). This page also shows a breakdown of the BILLIONS of dollars the largest banks in the U.S. put into permanent life insurance contracts. Some banks have as much as 40% of their vital reserves in these contracts. Bank of America has nearly $19 Billion invested in them. So it is good for them but not good for you? Hmmmmm…..

Webpage: Where do banks invest their money?