Common Sense Answers to Difficult Questions

Illusions Of Wealth Brings Investors Common-Sense Answers To Difficult Questions About Investing

An understanding of how money, economics and investing work in our country is essential for anyone concerned about their future. In Illusions of Wealth by Doug Eberhardt, he provides the framework for making better choices.

“I hope to give my readers the awareness and confidence they need to develop investment strategies on their own,” he says. “To keep your wealth from being an illusion, you must possess the ability to adjust your portfolio as the economic and investment climates change. I want to grant you control of your future and your wealth.”

Because an inadequate education system may have failed to teach us how to invest, we relinquish control to advisors who may or may not have our best interests at heart. This book is written to bring readers the awareness, confidence and insight necessary to overcome the future panics, crashes, and crises that will inevitably arise, and teach them how to profit whether the market is rising or falling.

Investors need to ask themselves these types of questions: What are the economic conditions on the horizon that can affect your wealth? Why do you invest the way you do? Who do you trust for investment advice, and why? How much do they make from their recommendations to you? Did they protect your portfolio during the last financial crisis? Is another financial crisis around the corner? How have you structured your portfolio differently to protect your wealth if we were to experience another economic downturn?

Doug Eberhardt is the author of the precious metals investment book Buy Gold and Silver Safely. Doug has been in the investment management business for over 30 years and is now sharing his years of research and discovery, accurately pinpointing economic and investment conditions for his readers.

For more information, please visit http://illusionsofwealth.com
Illusions of Wealth
Available online everywhere
ISBN: 978-0982586136
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Biggest End of the Year Financial Mistake

The Biggest Financial Mistake
At The End of the Year

By Marc Sarner

As the end of the year approaches we make plans to spend time with family and friends. Where are we going for Thanksgiving? Are we traveling somewhere for Christmas?

I find that many people think about their investments and reevaluate goals. However, they don’t think to examine whether or not they can convert part of their IRA to a Roth IRA with little or no tax liability.
That’s right. It is possible that you can convert your IRA with no tax consequence.

If you are having a low-income year or are in retirement and have a large IRA balance, it is possible for you to convert part of it without incurring tax consequences.

Why would you want to convert to a Roth IRA? Here are a few advantages to the Roth:

•  Withdrawals from a traditional IRA are taxed because you were able to defer taxes on that money when you made contributions to your account. Withdrawals from a Roth IRA aren’t taxed because the deposits into the account weren’t tax deductible.

•  Any growth in a Roth IRA is tax free as long as it has grown for at least five years.

•  With a traditional IRA, when you reach age 70½ you must begin withdrawing a certain amount each year whether you want to or not. That’s called the Required Minimum Distribution. But with a Roth IRA, there is no Required Minimum Distribution so even at 70½ you can withdraw as much or as little as you like.

 You want to make sure you are talking to your tax specialist or a seasoned experienced advisor when looking at these options. One thing you can do is have them do a mock tax return to see the effect.

Why haven’t you heard of this before from your advisors? If you think about it, tax professionals are reacting to the previous year’s income and transactions. They are paid to do taxes.

Advisors are hired to manage money and plan.  When was the last time your advisor looked at your tax return to see how much money they can save you? This really isn’t an area they specialize in and they aren’t paid by you to focus on it.

For pre-retirees and retirees, planning for retirement is more than picking investments that fit your goals. Retirement planning is about becoming financially independent. Including Roth IRA conversion as part of your end of the year game plan could save you thousands in the long run.

 You have until Dec. 31 to convert. If you end up doing too much, you can always re-characterize or reverse the transaction come tax time.  However, if you don’t do enough, you can’t do more conversion.

About Marc Sarner

As president of Wake Up Financial and Insurance Services, Inc. (www.wakeupretirement.net) for nearly two decades, Marc Sarner provides retirement solutions for retirees and pre-retirees that focus on reducing taxes, increasing income and managing risks. He earned his Bachelor of Business Administration from California Polytechnic State University.

How To Be Your Own Economic Quarterback

You Need To Be The MVP Every Year, Financial Planner Says

After a lifetime of earning and saving, one might expect a comfortable and financially secure retirement, especially with a reliable financial advisor – right?

“Life is rarely that simple or black-and-white and, unfortunately, neither is the financial realm,” says Bryan S. Slovon, founder and CEO of Stuart Financial Group in Greenbelt, MD ().

“Perhaps the arithmetic of personal wealth should be much simpler, but like it or not, the rules of economics are riddled with fine print, unexpected or inadequately explained conditions, and loopholes.”

Further complicating matters are various professionals in the financial industry. Whether or not a professional means well, the fact remains that many are actually trying to sell products, he says.

“It’s worth reflecting on where your advisor is coming from,” Slovon says. “If they are not fully independent – as in not working for a large institution – their advice may be biased toward sales.”

Ultimately, each person must be his or her own best financial advocate. It may take a team of professionals in various fields to provide retirees with the good life, but individuals need to be their own most valuable player for their well-being. Slovon reviews basic measures to quarterback your life to financial wellness.

•  Listen to your doctor … so to speak. If you want to enjoy your golden years, good health is arguably the most important step – and it’s cost-effective.

“More specifically, doctors often tell patients that they can be of service only in as much as patients are doing their part for good health,” Slovon says. “A healthy diet, exercise, regular doctor’s visits, etc. are necessary. These things help provide good health. A similar kind of vigilance is required if you want to fully enjoy your money in retirement.”

•  Audit your current and future expenses; spell out your plan. If you don’t have a plan for your money then you’re just hoping for things to work out. You can do better than that, even though changes in your plan will likely occur at some point. The most basic aspect of a financial plan includes understanding your current budget, which could be compared to expenses expected in the future. The more technical side of things, such as how to save on taxes and make your money go further, would benefit from analysis by a truly independent financial advisor.

•  Focus on your taxes, and perhaps tax-favored investments. An important part of understanding your budget, and making it work better for you, is getting reliable professional analysis on your tax situation. You may be paying much more than is necessary. If you are expecting to retire in the near future, you may especially benefit from analysis of your tax budget.

Also, ask about investments that are tax-exempt and tax-deferrable. These include municipal bonds and certain money market funds, which provide a way to grow money that’s exempt from federal taxes.

“Most of us give our lives to our work and families our entire adult lives,” Slovon says. “If you’re nearing or in retirement, it’s time to focus on you. That means you’ll need at least some professional financial help. However, you are the best person to oversee your own economic fate.”

About Bryan Slovon

Bryan Slovon is the founder and CEO of Stuart Financial Group, (www.stuartfg.com), a boutique financial planning firm exclusively serving retirees and soon-to-be retirees in the District of Columbia metro area. He is a financial planner specializing in retirement planning and wealth preservation to a select group of clients. He currently holds his Series 65 license and is a Registered Financial Consultant as well as a Comprehensive Wealth Manager offering investment advisory services through Global Financial Private Capital, an SEC registered investment advisor.