TAX-FREE Benefit Specialists - News & Analysis

What is a Retirement Roadmap?

2011-01-09T11:50:00.001-08:00

This unique service is offered through Straight Talk Wealth Radio, heard on AM radio stations throughout Southern California.

Most Americans have been marketed into thinking that there is no difference between "saving" for retirement or more properly, "investing" for retirement.

Which of you would pin your entire life's hopes and dreams on events that you can neither predict or control, and on which you could again lose half of your wealth if the ghosts of 2008 (or 2000 for that matter) ever return?

Why don't more people differentiate between their savings strategies (for monies they can not afford to ever lose) and their investing strategies (on money they CAN afford to lose value on as sometimes does happen with investments)? Because savings at today's rates of 1% are as good as losing money against inflation!

But what if you could double the income value of that money every 10 years - GUARANTEED? And what if when you go to withdraw those funds to live on your distributions would be guaranteed to last a life time even if the account values have been withdrawn down to ZERO!

This video shows how to begin.

Scott Warner on ROTH IRA Conversions

2010-05-01T20:55:00.001-07:00

CLICK HERE to Listen to the Show!
MP3 File
This topic has brought in more callers than anything in the recent history of the show. So we're still talking about it.

Find out how to transform that ticking tax time bomb (your IRA or 401K) into a permanent source of TAX-FREE income for you, your children and your children's children.

And yes - Scotty purposefully didn't tell me that I had an alfalfa sprout growing on top of my head!

Rest assured that what you see is always what you get at Straight Talk Wealth Radio!
CLICK HERE to Listen to the Show!
MP3 File

How to Get an Insurance Company to Pay ROTH Conversion Taxes

2010-05-01T10:51:00.001-07:00

This week Bruce covers one method of getting an insurance company to pay some or all of the taxes due on a ROTH IRA Conversion.

This show also covers most of the basics on ROTH IRA Conversions.

MP3 File

More on ROTH IRA Conversions

2010-04-25T19:48:00.001-07:00

This week I bring a couple of guests into the studio. Walt Lusk, one of the lead financial advisors from the Stewardship-Tarkenton Group; and my daughter Haley, just because she was hanging out with Dad today. But it does give us a chance to play "Are You Smarter Than a 22 Yr. Old?" Listen and you'll see.

MP3 File

Your Most Important Retirement Decision Happens in 2010!

2010-04-18T20:37:00.001-07:00

To be taxed, or not to be taxed - THAT is the question!

And to be honest, there is no right or wrong answer to that when it comes to converting your taxable IRA or 401K to a TAX-FREE ROTH IRA. But in today's show, we can help you understand HOW to DECIDE.

But, don't put it off, because the deal the IRS will give you in 2010 will never come around again.

It's all in today's show.

MP3 File

The IRS's Once in a Lifetime Gift to You!

2010-04-12T09:56:00.001-07:00

This year, in 2010, the IRS is giving you a chance to permanently avoid the biggest increases in taxes our generation will see in it's lifetime.

If you fail to investigate (right now!) converting your taxable IRA or 401K into TAX-FREE income forever, and then paying the ROTH IRA conversion tax burden over an allowed 2 two-year period, (you can wait until 2013 to pay the last of the conversion taxes) you may regret it for the rest of your financial life.

Don't turn down legal tax avoidance! The IRS and Congress will not repeat this deal.

Find out all about it on this week's show. It's an all new topic but it is perhaps the most important show we've even done.
CLICK HERE to listen to the show!
MP3 File

Special 2 Hour Easter Show -

2010-04-04T17:26:00.000-07:00

This was so great to cover a lot more ground than we usually can.
There's real substance in this show.

We cover the efficiency of money which can be improved to get more
money supply for you and your family while REDUCING risk!

I promise, this show will give you the most complete picture of risks,
and the strategies to avoid them that you have ever heard from us.

MP3 File

Banks Go BOOM in 2010 / Tax Targets

2010-03-21T20:21:00.001-07:00

In this show we cover two major topics of vital concern.

1.) More indicators are bubbling to the surface in the daily news that the second banking crisis and mortgage meltdown is on the foreseeable horizon.

2.) Increasing taxes. You don't even have to stretch your imagination to know where they're going!

In this show Bruce tells you some incredible and yet alarming stats about where the SAFE place to keep your money is, and guess what? It's sure NOT in the banks.

MP3 File

Reduce Your Taxes & Reduce Your Risk!

2010-03-14T18:13:00.000-07:00

Bruce covers the government's specific plans to increase taxes and strategies that can offset them.

Then he picks up on some future retirement risks which your stock broker probably forgot to tell you about - and how to avoid them, too.

MP3 File

Len Renier on The Next 3000 Days in America

2010-03-07T20:07:00.001-08:00

Len is a good friend of ours as well as the Founder and President of the Wealth and Wisdom Institute. He has spoken on several occaisions in front of the Federal Reserve Bank of Chicago.

Listen to this show and find out why our country's top bankers keep asking him to come back.

MP3 File

The Defining Moment - The Battle for Your Future

2010-02-27T14:40:00.000-08:00

This show contains one of the best connections between theory and application.

In the first half of the show Bruce covers the key principles of how he does his planning for clients to reduce risk reduce taxes, maximize their money supply and benefits, all without spending one more dime than they already are.

The the second half Bruce gives us a couple of case histories to see how such planing can play out.
CLICK HERE NOW to listen to the show!
MP3 File

Use These Revolutionary New Financial Courses - FREE!

2010-02-14T18:09:00.000-08:00

CLICK HERE to listen to the show
MP3 File
Our friend Leonard Renier has once again cut all new ground. Len is known for speaking every year to the Federal Reserve Bank of Chicago on their Money Smart week - and being given dozens of the bankers' business cards asking him to give them a call later.

What does Len know that they don't know?

YOU can now know the same thing because he has packaged up his best lessons into an all new website called E.D.U. - Education, Discovery, Understanding.

Your online source for financial education won't tell you WHAT to think about money, it will teach you HOW to think!

Get the details in this podcast of the KRLA show.

CLICK HERE NOW to listen to the show
MP3 File

Introducing E.D.U. Online Financial Education

2010-02-13T14:00:00.000-08:00

CLICK HERE to listen to the show!
MP3 File
An incredible FREE offer to our Straight Talk Wealth listeners. On this show we cover how you can get online and take these enlightening courses from Leonard Renier and the Wealth & Wisdom Foundation, that will help blow through the myths we've been fed all our lives from those who create situations, control the outcomes, and benefit from them.

Len Renier has spoken on several successive years at the Federal Reserve Bank of Chicago's "Money Smart" week, when he typically is handed the business cards of 50 major bankers who want to speak to him about THEIR MONEY!

We are honored to now be able to provide Len's curriculum.

CLICK HERE NOW to listen to the show!
MP3 File

The 5 Majors Risks to Wealth in the 2010s

2010-02-07T21:55:00.001-08:00

CLICK HERE to listen to the show!
MP3 File
Find out what to do about these 5 risks:
1.) Volatile investment markets
2.) Rising Taxes
3.) Inflation and/or Deflation
4.) Longer lifetimes create greater risk of outliving your money.
5.) The rising costs of medical and long-term care services can rapidly deplete meager retirement savings.

It's all in this show!

LISTEN NOW to the show!
MP3 File

What Was it Like When We HAD Deflation and Inflation?

2010-02-01T21:34:00.001-08:00

In this show I took some historical audio clips and I try to give a picture of the difference between inflationary times and deflationary times.

Find out how these influences are different in how they have effected the lives of the average American in history.

MP3 File

Inflation vs. Deflation

2010-01-30T18:00:00.000-08:00

Find out how to protect your portfolio from either. This file ends abruptly before the end of the show. Sorry about that!

MP3 File

Is the Other Show About to Drop?

2010-01-24T18:00:00.000-08:00

CLICK HERE to hear the show.
MP3 File
Signs this week of a top on the stock market? If so, WHY? Is it just a matter of Ben Bernanke's confirmation or not?

Maybe the fact that the government can only throw $1 trillion into a $20 trillion hole, might have something to do with it.

With the summer of 2010 set to be the start of new wave of mortgage Option ARMs re-casting, can the banking chasm open up all over again?

This is a critical show to hear!

CLICK HERE NOW to listen to the show.
MP3 File

Scott Warner on Frailties of the Markets

2010-01-23T14:00:00.000-08:00

CLICK HERE to hear the show.
MP3 File
This week, Scott discusses what the next cliff is that the economy and the stock market could fall of of in 2010.

Apparently, it sounds like President Obama was sitting in on this show making additional comments to Scott. See what he also has to say.

NOTE: The sound clip enters into the middle of a conversation Scott and I were having about the books of Harry S. Dent Jr. Sorry for the lack of intro there.

CLICK HERE NOW to listen to the show.
MP3 File

More on Inflation/Deflation because...It's IMPORTANT!

2010-01-16T18:46:00.001-08:00

CLICK HERE to listen to the show
MP3 File
We're going to be on this subject for some time to come. I don't think the average working person gets what impact this is going to have on their savings.

Some new angles here from previous shows. Scott quotes how there is $20 Trillion of private debt to still bust, (called "de-leveraging") vs the $1 or 2 Trillion that the government might throw at it.

Oh, and by the way....you can't hear any of our goofy sound clips on this audio! Shucks! We promise we'll fix it for next time, ok?

LISTEN NOW to the show!
MP3 File

A Specific Strategy to Defend Against Inflation OR Inflation

2010-01-11T20:28:00.001-08:00

MP3 File
In this edition, Bruce pays some very important audios of Glen Beck, Harry Dent, and quotes from Ron Paul and Peter Schiff, all making their case for opposite sides of the issue - will we have inflation or deflation in the coming decade? Either of these can be a cancer on your wealth and well-being.

But more importantly, Bruce actually demonstrates a very specific 3-part strategy that can protect your savings from ANY financial downturn.

CLICK HERE NOW to listen to the show!
MP3 File

The Most Important Question: Inflation or Deflation?

2010-01-03T21:06:00.001-08:00

CLICK HERE to hear the show:
MP3 File
Although we know that taxes are going up, and that the economic recovery will have its ups and down, we don't know for sure which way the money system will tip - Inflation or Deflation?

There are extremely convincing arguments being made on both sides of this issue. And the problem is that if you call it wrong, you could wipe out most everything you've saved.

In this show Bruce gives you a secure strategy that could care for you in EITHER situation. It wil help you find some certainty in the midst of a whole lot of speculation going on about our future.

Listen NOW to the show!
MP3 File

What Has Changed on Wall Street Since the Banking Crisis?

2009-12-13T20:21:00.001-08:00

CLICK HERE to listen to the show!
MP3 File
Sure seems like we have a new Bull Market on Wall Street today! Has it all been fixed since the Banking Crisis of 2008-09, or is this really a Bear Market rally? That is THE most CRUCIAL QUESTION investors should be asking today.

In this show we take a look at some hard facts. The Good Facts: that consumer confidence is rising, China is rebounding, and companies are increasing their stockpiles to sell again...and the Bad Facts: that by summer of 2010 48% of all U.S. home mortgages will be based on negative equity and commercial mortgage defaults are just beginning in earnest.

With all the deficit the government has created to mitigate the last banking crisis, can we withstand another?

Find out on Straight Talk Wealth Radio this week.
CLICK HERE to listen to the show!
MP3 File

Turn 5 Threats into Your Wealth to Your ADVANTAGE! (Part 2)

2009-11-16T20:53:00.001-08:00

CLICK HERE to listen to the show!
One thing for sure in the 2010's, the U.S. Government will be providing fewer and fewer benefits, while charging most of us higher and higher taxes to pay for them.

In this show find out how we took a typical tax return for a hypothetical Senior, and by increasing his returns, while increasing his safety, while decreasing his taxes, we increased his annual returns on his portfolio by 63 percent!

Also check out how we constructed a Muni Bond Maximizer plan.

Click here NOW to listen!
MP3 File

5 Threats of Loss - And How to Turn Them to Your ADVANTAGE!

2009-11-01T20:55:00.001-08:00

CLICK HERE to listen now!
MP3 File
You think the last 10 years was crazy for investors? Well, you ain't seen nothin' yet, baby!

However....in this show Bruce succinctly identifies the 5 greatest threats to your future plans and identifies specific strategies, not only to protect yourself from them, but to turn them to your advantage!

Find out how prevention of loss will become your greatest opportunity for gains in the 2010's.

Now LISTEN to the show!
MP3 File

SCHIZOPHRENIA on Wall Street! - A Vital Primer for You

2009-10-30T19:52:00.000-07:00

WARNING: This is more of a lesson or primer than it is a blog entry. We'll try to get it up on the website, which will be more appropriate. But for now, settle in and learn something I believe is vitally important to your understanding of investing and the markets.
-------------------------------------
If you've been following our show (tons of podcasts below) you know that I believe that the stock market is irrational, and by and large rigged against the average working Joe buy-and-hold investor. For the last 10 years that strategy has made you NOTHING in the markets.

So has Obama fixed it all now? Why can't Wall Street seem to decide?

Well, I want to give you just a little primer. This is a lesson on CONSUMERISM. I'm sure I don't need to tell you what consumerism is, and how it could affect Wall Street. What I want to tell you is how to look at the CAUSE and EFFECT of Consumerism.

What you see below is the Wall Street Journal version of today's crash on Wall Street of over 200 points. In this, you'll hear about how this volatility revolves around these core concerns about Consumerism.

THE SERVER OF THIS VIDEO CAN BE PROBLEMATIC. Here's a direct link if you have trouble http://online.wsj.com/video/news-hub-anxiety-returns-to-market/1EE54E5D-7F99-4533-97A5-63B954F9F365.html

Okay, now I'm willing to bet that what you see is what the commentator sees (because he's the one talking to you, obviously). But what I see is something different. (Hey! Maybe that's why I have a radio show on this stuff!)

Just about all the commentators are talking about the Cause and Effect of "The Stimulus" or the "Strength of the Recovery". But these are SHORT TERM causes.

As for longer term causes, one area you could look at - i.e. that you NEED to look at is "Why did this banking system collapse in the first place?" On this topic there is lot of good work out on the market. One of my favorite authors who predicted the Real Estate and Credit collapse as early is 2003 is John Talbott. Here's a link to his books through Amazon. http://www.amazon.com/John-R.-Talbott/e/B001ITYMME/ref=sr_tc_2_0 I also conducted about a 40 minute interview with him for the show about 9 mos ago, and I can post that to hear if you're interested. I don't agree with everything he writes, but his analysis points are very strong and enlightening.

Also, the PBS documentary Frontline, has done several excellent pieces on this. Inside the Meltdown is a good one to start with, although there are several more you can find at http://www.pbs.org/wgbh/pages/frontline/.

So the Frontline shows and Talbott go back to the years just before all this happened and tell you many of the underlying causes and circumstances of the collapse, so you can understand what we are recovering FROM.

But now let's go back to CONSUMERISM. Like it or not; whether you believe it is a virtue or not; it seems that our current American economy and certainly the investment markets hinge upon the health of consumerism, as your heard in the first news story above. But what drives long-term trends in consumerism?

What if a I told you that there is a force of nature effecting consumerism trends that is so large, and so inexorable, that nothing the government can do at all will change it? Not tax changes (up or down), not stimulus - nothing!

Well, I believe that there are several such forces. The National Debt is one of them, and is man-made, or rather stupidity made. And I SO want to write you more about that and I will. But the one I am talking about is Nature-made. It is that fact that by far the greatest demographic majority in this country; 78 million or our total 300 million people are of one generation - The Baby Boom. Hold on - don't zone out and say "I've heard all this" because unless you've studied the work of Harry S Dent, you have not.

Now I'll give you more about this on the show, and in upcoming blogs, but I want you to watch the following video on the basis of the Dent Method of forecasting, because it is really about the long-term.

And you will see, as I cover more of this, the long-term projection for Baby Boomer consumerism is that into the coming decade of the 2010's, there is just no way anyone is going to revive trends in consumerism in this generation, which may not be The Greatest Generation, but it is certainly The Biggest Generation.

CLICK HERE to view the presentation.

If the presentation is problematic at all, CLICK HERE to read about the Dent Method from their website. (The video can also be launched from there.)

If You Play the Market - PAY ATTENTION!

2009-10-07T13:43:00.001-07:00

Click here LISTEN NOW!
MP3 File
The father and son Securities Broker team of McKelvey Financial have the distinction of seeing the COMING crash of 2008-2009 and getting their clients out BEFORE the hurt.

Learn how Lynn & Ed McKelvey manage to PAY ATTENTION to 52 sectors of economic data on a monthly basis, and reject the idea of "Asset Allocation" "Annual Reviews" and "Portfolio Rebalancing".

I assure you, it's NOT the "Buy and Hold" approach your lazy broker indulges in, when they're too busy to think about what your money really means to you and the risks you take.
CLICK HERE NOW to listen to the show!
MP3 File

The Defining Moment - The Battle for Your Future (featuring author Len Renier)

2009-09-27T21:23:00.001-07:00

CLICK HERE to hear the show!
MP3 File
Len Renier has been repeatedly invited to speak before the Federal Reserve Bank of Chicago. He is the author of 3 best-selling books on the future of financial planning in America, and the perils we will face in the next 3000 days with increasing tax rates and volatility.

We are honored to have Len calling in to today's show. You will be amazed at his ability to make complex economic factors seem quite simple. He'll never tell you what to think - only HOW to think!

Now CLICK HERE to listen!
MP3 File

History Doesn't Work Anymore! How the Future Will be Different Than Anythng We've Seen Before.

2009-09-20T20:31:00.001-07:00

CLICK HERE to listen to the broadcast
MP3 File
Almost every investment advisor you encounter is going to show you the 70-year history of the stock market to foretell what you can expect from the future. The the last 10 years we're completely unlike the prior 70, and the next 10 will be even more so.

The economic world is going into new demographics and new risks, and new opportunities, where we have never been before.

Today's show look at the revelation of renown author Leonard Renier from his book, The Defining Moment.

Special guest, Scott Warner of LifeDesign Financial in Orange County, CA
NOW, LISTEN TO THE SHOW! (Click here)
MP3 File

IRS;s Plan to Share in Your Retirement Funds

2009-09-13T19:50:00.001-07:00

CLICK HERE to listen to the show!

MP3 File

As taxes in America surely increase to compensate for all the dough we owe China, Saudi Arabia and the like for our $12 trillion national debt, it is not unreal to expect that you will personally get to keep about 50% of your retirement savings for retirement. Find out how in today's show.

Find out about the double-whammy taxation that will be placed upon IRAs, 401K's and the like that will see a likely 20 cents on the dollar ever make it to the next generation on funds that are left behind.

Hear from several authorities, Ed Slott (author and "recovering CPA" featured on PBS broadcasts about he IRA Ticking Tax Time Bomb); Douglas Andrew, N.Y. Times best selling author of the "Missed Fortune" financial series; and our own James Johnson, the Southern California affiliate of both of these authorities on today's show.

And find out why the IRAs is turning out to be the best retirement plan Congress ever set up - for THEMSELVES.

Hey, you can protest the politics until you're blue in the face, but what are you doing to take the simple and standard steps you can do to protect your own nest egg, LEGALLY.

LISTEN TO THE SHOW, NOW!

MP3 File

What Will the "Recovery" Look Like?

2009-09-06T23:08:00.001-07:00

Click here to LISTEN TO THE SHOW!

MP3 File
If you have substantial retirement savings and are wondering what to do now that some people are seeing the first "green shoots" after the worst recession since the 1930's, this show is of vital importance to you.

Believe it or not, whether we have a "L", a "U" or a "W" economic recovery will make a HUGE difference on the risks you still face in your portfolio, and how secure of a retirement you can expect.

This show also draws a line in the sand between Savers and Investors and will help you decide which you are. Savers who are hoodwinked into playing the investor's game get eaten up!

Watch the Post Show Video:

Now, LISTEN TO THE SHOW!

MP3 File

Is the Stock Market on Drugs?

2009-09-01T08:59:00.001-07:00

What does it mean when the stock market is on a manic trend that is contrary to the underlying economic climate?

Who makes all these bubbles that suck the savings out of America and where does the money go?

Most importantly: What should you DO about it?

Here's the post-show video:

NOW LISTEN TO THE SHOW! (Click the podcast below)

MP3 File

Surviving the Next 10 Years in America's Economy!

2009-08-21T11:08:00.001-07:00

Why are the stock market and the economy so disrelated in their future outlook? What do investors do when they took a beating in the market from '08-09, and now they sit on the sidelines while the current rally back up is getting right past them?

Special FREE offer at the end of this video.

If you have substantial retirement savings and are wondering what to do now that we are seeing the first "green shoots" after the worst recession since the 1930's WATCH THE VIDEO ABOVE. What could be next? Will stocks fall again from a "W" recovery? Will Hyper-Inflation rear its ugly head?

A Special FREE Educational video for the listeners and fans of Straight Talk Wealth Radio. Visit us at straighttalkwealth.com

YOUR IRA IS A TICKING TAX TIME BOMB!

2009-08-18T20:23:00.001-07:00

James Johnson give us a taste of the strategies he's learned from Ed Slott to extract hard working people from living a tax nightmare when they retire. Very informative. Bruce is wacked, as always.

MP3 File

Why Would HARRY DENT Say, "NOW is the time to SELL"?

2009-08-04T09:28:00.001-07:00

This week's show had a lot of substance. You're going to hear exactly what data and analysis that market forecaster, Harry Dent, bases his predictions on. This is VITAL information if you've been thinking about getting back into the market. You might think twice after hearing what Mr. Dent has to say.

Determine for yourself how right or wrong he may be.

Featuring Harry Dent's Orange County affiliate, Scott Warner, of Life Design Financial.

MP3 File

Retirement Road Map

2009-07-30T10:18:00.001-07:00

Did you know that 2.4 million people lost their jobs in 2008? In such unstable times, it seems impossible to beat risk and volatility. But there are things you can do to ensure you are living with safe money, and we want to share them with you.

MP3 File

Employers Face New Legal Threat from 401(k)s

2008-02-21T11:16:00.000-08:00

L.A. Times reports today "High Court Allows Workers to Sue Over 401(K) Losses" . If you missed it you can dig it up from the Saving and Investing News Section of my website.

What does this mean? It may mean that a gaping liability has opened up for small and mid-size business owners that don't have the funds for high-powered attorneys to defend them against employees that are ticked off that the stock market often and predictably does go down.

I started in to this article with my curiosity piqued, turning to utter dismay as I plowed through. Seems that a Texas man had instructed his 401(k) administrator to move his stocks and mutual fund allocations toward bonds, and thereby hedging some protection from the stock market tumbling. Oops, the administrator dropped the ball and didn't get it done. Dumb---! A couple of months down in the stock market and $150,000 in retirement losses later, it was now the employer's job to mop up a very expensive mess, by order of the court.

Now definitely, somebody needs to be responsible for dropping the ball on this worker. You don't ignore trading orders. That's inexcusable. But look for what's missing in this report and you'll see the elephant in the drawing room. We don't know who the administrator was, and what their relationship was to the employer. Unless this was a rather unusual circumstance, the poor employer is getting nailed for what had been mishandled by the people whom he has hired and paid for their services to correctly and responsibly deal with administering the plan.

In most cases, the business owner just wants to provide a benefit to help their employees plan for retirement. He or she is running the construction company, or the tech services group, or the plant. Come one, they're not an investment consultant. No, they hire Oppenheimer, or American Funds, or someone like that to take care of all that for them and they pay fees for it. But typically, it's the group they hire that administrates the plans, not Joe Jones of Jones Construction.

So if Acme Financial Services fails to live up to their fees that Joe Jones pays, then Joe Jones deserves to be sued for it? What sense does that make? You might think it makes "deep pockets" sense, but I'm not even sure that's true. Most of the financial services giants are going to have a lot deeper pockets than Joe Jones.

The articles continues that "This opens the door to a variety of worker lawsuits, including challenges to the fees that workers are charged to administer their savings plans". Oh yeah, right - the owner pays the big fees for Acme to administer the plan, but gets sued for the fees that Acme charges the employees if they don't like them or don't read what they're signing.

Please get this - I'm not complaining that the workers have a right to sue someone for ignoring trading orders or hiding excessive fees. I have not one iota of disagreement with it. What I don't understand is why they are suing the employers who were also let down by the administrators, for the administrators' negligence.

So what's the take-away here? Well, first of all, you better understand that any Qualified Retirement Plan (SEP's, Simple IRAs, Profit Sharing Plans, etc) is going to carry the same liability to whatever develops from here. It's certainly not exclusive to 401(k)s.

Second of all, as the article mentions, being as this will make it easier for workers to be compensated for someone negligently screwing up their retirement plan, there's going to be a period of defining what qualifies for "screwing up", so to speak. And there will be a wave of court battles to expect for it.

But my take-away is more personal. For years I have been advocating that most business owners and key executives tend to have a completely different personal economy than the rank and file. As such, they begin with a tactical mistake in trying to fit their own retirement planning into a retirement plan designed by Congress to favor the rank and file - and set their future on a course for critical tax nightmares when they retire, and now add to that a whole heap of newly gained legal liabilities for the administrators they hire.

Retirement plans for the rank and file may not be the best choice for owners, officers and key executives. Fact is that there are a world of alternatives out there to reduce taxes and better leverage corporate wealth than a pedestrian Profit Sharing or 401(k) plan. I still don't get why they're so little known about.

Point is, if you want a benefit plan for your employees, get a Qualified Retirement Plan in place and just make sure to allocate just a little bit more to your legal defense fund ahead of time. But if you're starting with a plan for the boss, there may be better ways to go.

Sorry to Say "I Told You So"

2007-12-23T10:30:00.000-08:00

San Fernando Valley Business Journal – December 24, 2007

GUEST COLUMN
By Bruce Weide

I saw Jason Schaff at the 50 Fastest Growing event last month, and he just about turned white when he looked my way, like he’d just seen a dead man walking! I haven’t written for the Journal in over a year and Jason thought he might need to start checking the obituary pages for my name.

Well, it’s certainly not for any lack of financial and economic news I haven’t written, that’s for sure. Come on – the tanking real estate market, the credit crunch, volatile stock markets, weak dollar, taxes getting even surer to climb despite all the smoke and mirrors adjusting the AMT downward. What a turbulent year for me to be sitting on the sidelines keeping my mouth shut!

Believe me, it wasn’t easy for me to sit silent. But I have had two excuses. One - good year for business. I’m an advisor to my clients first and a big mouth editorialist second.

The second excuse relates to the first indirectly. And that is, I already told you so! Why should I say it all again and again?

Back in early 2006 I kept screaming “It’s over! End of real estate boom.” Seems like no genius now, but back then I suggested some rather serious medicine be taken to preserve home equity values, even if that was still early enough for the majority to wait and see. And all that’s been going on newsworthy since that time is exactly what I said would happen. That big sucking sound!

So what’s your home equity look like today? Had enough? Well, sorry to remind you that the worst may be yet to come. Consider that in 2008 about half a trillion dollars' worth of Option ARMs are due to reset to a higher mortgage rate as their two-year teaser rate period comes to an end. (Good thing that my opinions don’t necessarily reflect those of the SFVBJ. Please keep buying the Journal, real estate brokers.)

Last year, I quoted John R. Talbott, visiting scholar at UCLA’s Anderson School of Management, in his book Sell Now, The End of the Housing Bubble, (2006 St. Martin’s Griffins) when he wrote:

…you need to know that today’s high housing prices are an abnormal bubble about to burst…”

Talbott nailed it when he demonstrated in his book that outrageously low interest rates combined with obscenely easy credit had falsely inflated the housing markets, and it was coming to an end in a big way.

What I didn’t tell you about then is when he also said:

It is not fair to say that the current boom [2000-2005]will fully reverse itself, but is accurate to say that if it does not, it will be the first time in a century tat a boom in real prices actually stuck. (Note: Talbott has removed relative inflationary increases from the equation.)

But personally I don’t really even care about investment losses and gains and strategies in the short run. What I DO care about is this, and it is no small concern: There are 78 million Baby Boomers heading into retirement soon enough, and the average 401K balance is about $50,000! Sure, you guys have done better, but that means that a lot of Boomers have done worse! And the ONLY wealth they have fortuitously accumulated over recent years is (was) the equity in their home! Bye-bye.

My point is that the worst part of the real estate crash is that what little shot at a comfortable retirement a lot of the working class may have accumulated despite themselves, it’s now on the final run to vaporize right in front of their eyes, and they don’t even know it.

But the good news, (I know you’re ready to strangle me by now. I bet I had you going) yes, the GOOD news, is that in the coming years CASH WILL BE KING. And will there ever be a Buyer’s Market in real estate! Yes, you want to buy, but you also need to be prepared to hold for at least a decade for some real appreciation.

If homeowners were only to cash out now, (you don’t need to sell your house to do that. See The Last Chance Millionaire by Douglas Andrew, 2007 Warner Books) and preserve what equity they have left, they’ll need to keep that equity in a conservative “purse” that grows slightly better than the cost of the mortgage.

But that’s the trick. Now you’re talking inflation, weak dollar, unstable markets, and Uncle Sam’s increasing cut. I guess I need to write more next issue. I’ll tell you how to duck those problems, too.

I'm Back From the Dead!

2007-11-21T15:28:00.002-08:00

CRIME: Don't you ever start a blog and then let it slumber! It makes you look very un-blogger like, undedicated, and dilettante. How can you possibly be taken seriously?

HOW DO I PLEAD?: Guilty as charged. I throw myself on the mercy of the Courts of Bloggerdom. In fact, may I add for Holy Blogger Father to forgive me...for it has also been over a year since my last communion with the San Fernando Valley Business Journal, writing any editorials.

WHAT DO YOU HAVE TO SAY FOR YOURSELF BEFORE SENTENCING? Well, gee...uh, glad you asked.

Excuuuusse meee, but I do run a legitimate business, you know! And unfortunately, or fortunately, the last bit of PR, writing, and promoting I had done, along with launching my radio show with Chuck Gebert, Straight Talk Real Estate, (KRLA 870AM, Sundays 6:00pm) has just kept me swamped with simply caring for my own clients. You know, the unglamorous stuff like crunching numbers and designing strategic financial plans. (Not really, it's actually fun working in the mad laboratory of financial planning, as nerdy as that may sound.)

And I'm not writing again now because business is slow, either. But - manna from Heaven- I have a new Marketing Director, Eric, who is taking half of my duties away from me and handling all of our promotion and public relations. Eric just points me in a direction now and says "Write", "Speak to the audience", ""Go to the studio", "Roll over", "Play dead", "Write me a paycheck".

But I have to tell you - Man, have I been SO YEARNING to have written you. SO MUCH has been going on since I was last keeping this blog.

Stock market booms and crashes
Tanking credit market
Tanking real estate
Weak dollar
High oil
Inflation or no inflation on the loom?
Taxes almost sure to climb with the next political administration and over the coming decades

Don't think I haven't brought a stack of news articles into the office to post to our website
news section. (That's also way behind on being kept up to date.) But believe me, I read the same things you read, and the same things keep me up at night as do you. I believe, though, that I do have the advantage of being in a profession where I can spend the time to study these developments, study what financial strategies are being promoted, and tear them apart a bit.

So that's what I want to do for you in the coming weeks and months with this blog. With my plate a little less loaded, and with Eric's prodding, I want to see if I can't break down many of these events for you and the fear they generate, and perhaps point you in a direction of some shelter from the storm in the coming years.

Essentially, my business focuses on risk management.

On December 8th in Glendale, we're holding a seminar in my office entitled

The NEW RULES OF HOME EQUITY and INVESTING IN UNCERTAIN TIMES

In it we'll cover:

· How to Lock-In Your Home Equity Values NOW in a declining Real Estate Market

· How to enjoy the portfolio growth of the stock market when it rises, and guarantee against loss in down years.

· How to exploit the ebb and flow of capital between real estate and the stock market, without ever having to time the markets.

· How to ensure you get the best potential gains out of Asia, Europe or America, without having to “bet on the horse” until the race is over!

· How to guarantee 140% of the S&P 500 growth annually in your portfolio.

· How to make it all tax-free, and ignore the tax hatchet sure to come in the next 10-20 years.

In my blog, I'll start to actually break down these bullet points one at a time, and give you some preview and hopefully generate some discussion, of what we cover in the seminar. Your readership and your contribution will be great appreciated.

Foreclosures, ARM's, and the BIG Mistake

2007-06-25T13:39:00.000-07:00

See the L.A. Daily News article on Report Hits Close to Home, posted in the Real Estate News Section of my website.

The San Fernando Valley had the highest number of foreclosures in L.A. area during April 2007. Twenty-three homes were lost to foreclosure and 289 properties were in some stage of the process.

And if you read the book Sell Now, by John R. Talbott, you get the feeling "you ain't seen nothin' yet". Talbott's expecting a huge wave of more foreclosures to come and he blames in part the rampant use (abuse) of Option ARMs. He's right in the context he's referring to, i.e., that people have been buying homes they could never have otherwise afforded, and never will. Now they're paying the piper. And by making the unaffordable artificially affordable, we've managed to inflate the entire housing market...artificially.

But don't throw the baby out with the bathwater! There's a right way and a wrong way to use an Option ARM.

You need to understand that you can't build a castle by eating away at it simultaneously. However, Option ARMs are very appropriate when your goal is to accumulate the principal outside of just handing it over to the mortgage company. In other words, if you use the savings of an Option ARM to still make your principal payments, but make them into something (i.e. a cash or other investment account) where you can control getting it back for emergency or investment opportunities, then you haven't really failed to make your principal payments at all, have you?

In fact, if you take a look at Doug Andrew's new book, The Last Chance Millionaire, and you read Chapter 7, Learn How to Become Your Own Banker, you'll see that this is actually a faster way of paying off a mortgage!

Believe it or not, we actually recommend to many of our clients to get an Option ARM -- IF they will take the otherwise payable principal, and save or invest it. Now you're off to the races!

That principal could buy other real estate, or be invested into insured investments which have a history of clearly outperforming the cost of the mortgage. That's how you use an Option ARM.

Last Chance Millionaire

2007-06-13T18:19:00.000-07:00

See this AP Newswire Boomers Likely to Delay Retirement on the News Section of my website.

It says that Boomers have less kids, less retirement cash, and will retire substantially older than previous generations, or not at all.

In fact, apparently since Social Security was created 50 years ago, retirement age had been trending toward younger ages until about the 1980s.

Sure, we are living longer. Sure, I certainly don't plan on quitting work and being idle, a sure formula for an early grave. But to me retirement means financial independence. It means freedom to choose. So in that sense, it's important and I want it now.

What's overlooked with Boomer retirement is the enormous riches they've accumulated from about 2000-2006 by simply owning their homes. This could be the key to salvaging themselves from the brink of retirement failure if they just get a clue how to preserve and grow their most fortunate, if only inadvertent new wealth.

And if you look at the real estate news on my website, you'll see that they'd better act fast before that wealth disappears. It'll take precious years to not only recover the loss of their home equity values, but the additional growth they could have yielded if they had acted to grow and diversify that equity before the real estate market deflated.

Good new book came out this week that really summarizes the situation and solutions. Last Chance Millionaire by Douglas Andrew. Let me know what you think of it.

Doug will be in town next week giving seminars. Contact me if you want to go.

Housing Prices Down, Stocks Up...No, they're down... No, they're up...

2007-06-07T10:54:00.000-07:00

I'm not even going to read the whole articles. I can get the drift. And I only care about the big picture, anyway. Two articles posted under News Section on my website today:

What's interesting is how the good news gets accompanied by the bad news, and the meaning gets lost in between. The bad news in the Bernanke article is that stocks fell as a result of Bernanke's talk! Why would stocks fall when the Fed says the economy is so strong??

They fell because when the economy is strong, the Fed keeps interest rates high. Why? Because if money was super-cheap, people would build business and commerce on easy borrowed money so fast, that the economy would then over-heat. The danger in an overheated economy is that prices begin to rise. (Inflation. I'll explain that connection in another blog.) Inflation out of control sends the whole house of cards tumbling.

So, while some sectors like real estate have been waiting for interest rates to come down, it ain't gonna happen for a while now. Good news, bad news. The message? Stocks are tumbling momentarily because some people want interest rates down and they're not happy. But interest rates are staying high because the economy is hot right now - and overall that's good for stocks, if a little rough for real estate.

Don't worry, it'll shift sometime later up the road. The two markets tend to see-saw each other. Right now it's stocks' day in the sun.

Fire Sale in Real Estate

2007-05-24T14:05:00.000-07:00

Well, it might be good new for Toll Brothers, but it ain't good for the rest of us. Reuters reports today that luxury home builder Toll Brothers have increased volume by slashing their prices.

The Commerce Dept. saw better than expected home sales, but it's being accomplished by slashing prices across the county.

Do you think this is good news or bad news? I've read a couple of different articles about this today, and the media can't figure out the twist on it.

For me, I've got my home equity out and in cash. So I don't care if my home prices falls, because my value from the peak of the market is in an account earning more than the cost of mortgaging it out.

I just feel sorry for those that have waited. It's not just the equity they've lost since the market declined. It's also the growth from the interest they could have made for as many years as it take for the market to come back.

Pity. Home sales "up". Good news or bad?

Paul Hackett Download #1 20 Apr 2010

2007-05-20T16:23:00.000-07:00

For Agent de-brief

MP3 File