Common Sense Strategies for
Successful Equity Management
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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?

Most people are down 30% or more in their retirement accounts and they are looking for financial planners in Arizona that have a different approach. Good financial planners in Arizona will provide a plan that protects your money from market losses, gives you a great return and protects your income from future tax increases. Although this sounds like the obvious, common sense approach, most financial planners in Arizona will not offer you this type of program.

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.