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IRA Options

I am a Fee Only Sacramento Financial Advisor.  I have 38 years experience in this business. Today I want to touch on some IRA options you have.

Option #1: You can continue to withdraw your required minimum deposit every year until you pass away. Then, if you have named beneficiary(s) of your IRA they will inherit your IRA and continue to take out required minimum distributions based on their age until the account is emptied. This is usually called a “stretch IRA” and it is a perfectly fine way to go. (more…)

Bank Fees Chump Change Compared to Mutual Fund Fees

Ripoff! Scam! Greed! Cried the public as BofA announced its intent to charge a $5 monthly fee for debit cards. Waves of protest swept the land over a $60 annual fee. Really? Actively managed mutual funds charge their shareholders annual fees that can run into the thousands, tens of thousands of dollars, and they do not disclose either the amount or the timing of the charges on their client statements! The bank fee of $5 per month is chump change compared to the mutual fund fees many companies charge. (more…)

The Tortoise Versus the Hare: Volatility Risk

When making investment comparisons, most investors look first at the average annual 1, 3, 5 and 10 year returns in deciding where to put their money. While this makes sense, most investors do not take the annual return comparison to the next level and see how the annual average returns were achieved. This next level is looking at the volatility of the investment, how much it went up and down over the return period which created the average annual return numbers. The volatility of the return sequence can make a large difference in the total return. (more…)

Occupy Wall Street: Hit Them Where It Really Hurts

When an infant wants something or does not like what is going on, it cries because it cannot articulate its wants or desires. The Occupy Wall Street movement is much like an infant. The occupiers want something and do not like what is going on, but they are unable to articulate exactly what it is they would like to see changed, so theirs is an inarticulate cry of protest, a wailing for something they know not what. (more…)

Annuities Pros and Cons Part 3

Many of the Associates of G.M. Kenney & Associates are large annuity wholesalers who, together, keep up to date on the hundreds of new annuity products designed by the insurance company manufacturers every year. I am in constant contact with these annuity wholesalers discussing the latest annuity formulas and annuity services and the latest wrinkles in annuity product design. Of course, the purpose of my constant surveillance of the annuity market is to find products that work in my client’s Retirement Money Machines. (more…)

Annuities Pros and Cons: Part 2

In my last post I introduced you to some very basic annuity concepts and cautioned you to be wary about who you do business with, as part of my ongoing annuity service.   In this post I will focus on fixed deferred annuities.

What is a Fixed Deferred Annuity?

A fixed deferred annuity is a contract between you and an insurance company. You give them a chunk of money and they give you a contract which spells out what they will do with it and for you. (more…)

Annuities Pros and Cons

With the scary gyrations of the stock market,  annuities are receiving increased attention as safe places to put retirement savings.  The good news is that annuities can be an integral part of a well designed Retirement Money Machine. The bad news is that there can be devils in the details of annuities. I have been dealing with annuities throughout my 38 years as a Sacramento financial advisor providing annuity services. In this series of  retirement blog articles I will share with you what you need to know  to stand a chance of getting the right annuity for your circumstances. (more…)

AN INTRODUCTION TO THE CONCEPT OF YOUR RETIREMENT MONEY MACHINE

To fund your long term retirement you are tasked with several decades of generating an annual income sufficient for a decent retirement. What a “decent retirement” consists of is a matter of personal choice. Whatever your version of a decent retirement may be, you must have long term investment success to not outlive your money. (more…)

Farming is Better Than Hunting in the Stock Market

Filed under: Smart retirement investments — Tags: , — admin @ 10:44 pm September 6, 2011

Wall Street would have you believe that stock market investing is like hunting; hunting for mispriced stocks (stock picking), getting out when the prey turns nasty (market timing), and relying on a guide (track record investing). Nobel Prize winning financial scientists strongly disagree with Wall Street’s hunting strategy. Instead, their decades of research prove that stock market investing is more like farming.

In today’s lightning fast, computer intensive global market the prices of these investments at any given time are fair and accurate reflections of their value. The market works extremely well in gathering all known information of every investment and the market rapidly and efficiently reflects all known information in the price of any given investment. Therefore, research shows, any attempt to identify stock prices that are “wrong” is a very expensive and ultimately futile exercise.

Wall Street would have you believe that somehow their research gurus know better than the market what the “right” price is for a given stock and that they can act fast enough to take advantage of the market’s inefficiency in pricing. If that is so, why does Wall Street spend billions of advertising dollars to attract your money? Why don’t they just get filthy rich by investing their own money in these supposedly mispriced stocks they claim to be able to identify? It makes one wonder at the truth of their claims to be able to consistently identify mispriced stocks, doesn’t it?

The globe is populated with thousands of public stock companies. Some are small, some big, some are large growth companies, some are lower price (value), some are in the middle. Bonds run from blue chip to junk Instead of thinking of each individual investment as potential prey for sharp eyed stock pickers, consider the global stock market in its entirety to be a farm with each stock being just one of thousands of “plants” in the global stock field. The Retirement Money Machine is designed to harvest all of the returns from all of the thousands of stocks in the global market. Doing so has you capturing what is called the global market capital rate of return. Capturing this global rate of return annually will result in a very successful long term investing experience.

Wall Street gambles and speculates with your money in a handful of stocks which may or may not be around in the future. The Retirement Money Machine relies on the long term survival of global commerce to power your financial future.

 

Nobel Prize Winning Solutions to Outliving Your Money

Not outliving their money in retirement is a concern for many millions of people in or nearing retirement. The Retirement Money Machine is the best answer currently available to the problem of retirees outliving their money.

The Retirement Money Machine is a catch all term for research conducted by Nobel Prize winning financial scientists and other award winning researchers into how best to generate long term wealth in the stock market. A group of these distinguished financial scientists have created a very special family of structured asset class mutual funds to put into practice what their research shows to be the best method for long term stock market investing success. It is these structured asset class funds that are the components of the Retirement Money Machine.

Perhaps the key research finding leading to the creation of the Retirement Money Machine is that Wall Street’s traditional investment methods of stock picking, market timing and track record investing are demonstrably inferior to the structured asset class method of investing, especially over the several decade time horizon retirees must anticipate.

So, on one hand there is a very great and very real need for retirees and near retirees to establish a system that maximizes their chance of not outliving their money. On the other hand there is a group of financial scientists whose research has uncovered the very best investment strategy to generate long term investing success in the stock market…a Retirement Money Machine if you will. It is my mission to match those in need of a viable long term wealth creation strategy with the long term wealth creation system created by the finest financial minds in the world.

Of course, as with any stock market investment, past performance is no guarantee of future results. That said, you have to have some rational method to generate wealth for several decades of retirement. The Retirement Money Machine provides that rational investment method, maximizing, but not guaranteeing, your probability of long term investment success.