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.

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.