Team Meeting Handouts 12 7 2011
Marketing Critique Call December 7th 2011 EMAILS FROM THOMAS SPACE
Email #1: Subj: Safe Money Millionaire - Market History
Source: Crestmont Research
Above is a chart of the stock market from 1900 to 2010 depicting the stock market performance – Bull Market in Green and Bear Market in Red – As you can see, it’s performance was pretty impressive in the 50’s & 60’s, flat to negative performance in the 70’s (an era of Oil Embargo’s and Recession) and the biggest market boom of all in the
80’s and 90’s = 20 years of virtually straight up performance with an average annual rate of return of 17%. Do you know what fueled this phenomenon pushing the market higher and higher? It was the advent of the 401k, lower taxes on disposable income and deferred growth until you retired. The employee put in as much as they could, perhaps took more risk than they should have and even borrowed on their home equity to add more dollars to the stock market. Even cancelled cash value life insurance policies, replacing them with cheaper ones and investing the difference. How do I know this, because I lived through it. All of this growth was made possible by the 70+ Million Baby Boomers who were taking advantage of the tax laws and retirement savings plans to fuel the growth in the mutual fund industry. But what this chart doesn’t tell is that as this climb to higher growth levels of the stock market was happening, the “Boomers” were getting older (1946 to 1964) reaching age 65 in 2011. So picture a “Bell Curve” or more specifically half of a “Bell Curve” on this chart. The First half rising gradually as more and more retirement dollars are being added each and every year. Now picture the other half of this chart or “Bell Curve” as those “Boomers” begin to remove those retirement dollars each and every year with less and less employees contributing to their 401k or IRA plans. That’s right, more and more RED will start to show up year after year because it takes NEW dollars to push the market higher. There’s and old adage “A Rising Tide Raises All Boats”…as the sea pushes more water into a port, the level of the port swells lifting all boats. Conversely, as the sea ebbs from the port the level of the water shrinks. That’s what is going to happen to your retirement dreams if you simply sit on the dock of the bay and watch the sea of “Boomer” flow into retirement.
Let me show you how you can take charge of your own destiny and enjoy the peace of mind that comes with proper planning. 888-8137408 Cordially, Thomas E. Space, CFP ADVISORS Financial Planning Group, LLC
Email #2: Subject: Safe Money Millionaire approach to retirement planning “Generation Jobless” was how The Wall Street Journal put it. 19 Statistics About The Poor That Will Absolutely Astound You. #1 According to the US Census Bureau, the percentage of “very poor” rose in 300 out of the 360 largest metropolitan areas during 2010. #2 Last year, 2.6 million more Americans descended into poverty. That was the largest increase that we have seen since the US government began keeping statistics on this back in 1959. #3 It isn’t just the ranks of the “very poor” that are rising. The number of those just considered to be “poor” is rapidly increasing as well. Back in the year 2000, 11.3% of all Americans were living in poverty. Today, 15.1% of all Americans are living in poverty. #4 The poverty rate for children living in the United States increased to 22% in 2010. #5 There are 314 counties in the United States where at least 30% of the children are facing food insecurity. #6 In Washington DC, the “child food insecurity rate” is 32.3%. #7 More than 20 million US children rely on school meal programs to keep from going hungry. #8 One out of every six elderly Americans now lives below the federal poverty line.
#9 Today, there are over 45 million Americans on food stamps. #10 According to The Wall Street Journal, nearly 15 percent of all Americans are now on food stamps. #11 In 2010, 42 percent of all single mothers in the United States were on food stamps. #12 The number of Americans on food stamps has increased 74% since 2007. #13 We are told that the economy is recovering, but the number of Americans on food stamps has grown by another 8 percent over the past year. #14 Right now, one out of every four American children is on food stamps. #15 It is being projected that approximately 50 percent of all US children will be on food stamps at some point in their lives before they reach the age of 18. #16 More than 50 million Americans are now on Medicaid. Back in 1965, only one out of every 50 Americans was on Medicaid. Today, approximately one out of every 6 Americans is on Medicaid. #17 One out of every six Americans is now enrolled in at least one government antipoverty program. #18 The number of Americans that are going to food pantries and soup kitchens has increased by 46% since 2006. #19 It is estimated that up to half a million children may currently be homeless in the United States. Q. How could the most sophisticated, most dynamic, best capitalized, high tech enhanced country in history produce such an outcome? The answer is simple: Free Enterprise, that is capitalism, doesn’t give you what you want...It gives you what you earned… And it usually does so with such a long delay that few people connect the cause with effect.
Don’t delay anymore…retirement is right around the corner and an effective plan will give you what you deserve. Let the Safe Money Millionaire approach help you, today!
Cordially, Thomas E. Space, CFP
Email #3 80 MAY BE THE NEW 65 FOR RETIREMENT AGE, SURVEY SAYS November 16, 2011 (Bloomberg News) Americans are prepared to work longer in order to save enough for retirement, according to a survey by Wells Fargo & Co. About 76 percent of respondents said it’s more important to reach a specific dollar amount before retiring, compared with 20 percent who said it’s more important to retire at a given age, regardless of savings, according to the survey of adults with household incomes or assets from about $25,000 to $100,000. “Eighty is the new 65,” Joseph Ready, executive vice president of Wells Fargo Institutional Retirement & Trust, said in an interview at Bloomberg headquarters in New York before the survey was released today. “It’s a real sea change.” About 74 percent expect to work in retirement, according to the survey, with about 39 percent working because they’ll need to and 35 percent because they want to. And 25 percent of those surveyed said they expect they’ll need to work until at least age 80 because they don’t have sufficient savings. “People are starting to move toward understanding the different levers of what they’re going to have to do to make it in retirement,” Ready said. About 68 percent of those surveyed said they’re not confident the stock market is a good place to invest their retirement savings. About 45 percent of respondents said if they were given $5,000 they would buy a certificate of deposit, and 50 percent said they’d invest it in stocks or mutual funds. No Good Alternative “Even though there’s a lack of confidence, I don’t know that they see there’s a good alternative,” to investing in stocks, said Laurie Nordquist, executive vice president of Wells Fargo Institutional Retirement & Trust. The Standard & Poor’s 500 Index returned 1.32 percent this year through Nov. 14. One-year CDs yielded 0.35 percent and five-year CDs paid 1.19 percent on average as of Nov. 3, according to Bankrate.com, an online provider of consumer-rate information and a unit of Bankrate Inc.
Survey respondents had saved a median of $25,000 towards retirement and estimated they’d need a median of $350,000 to support themselves in retirement. About 42 percent expect to receive a pension or already receive one. “The numbers don’t add up,” Nordquist said. “The gap is probably larger than what they self identified.” Those surveyed expect to withdraw about 18 percent on average from their savings each year in retirement. “We would recommend typically 4 percent or less, in terms of withdrawals,” Nordquist said. About 57 percent of respondents said they’re confident they’ll have saved enough for retirement. “You used to just save blindly, but I think the blinders are coming off,” Ready said. Geographic Attitudes Wells Fargo hired Harris Interactive Inc. to survey 1,500 Americans aged 25 to 75 by phone in August and September. San Francisco-based Wells Fargo is the fifth-largest administrator of 401(k) retirement assets, overseeing about $117 billion as of 2010, according to Cerulli Associates, a research firm based in Boston. Fidelity Investments is the largest administrator with about $824 billion in assets. Residents of the San Francisco and Sacramento, California, metropolitan areas are generally the most ready for retirement, and residents of Indianapolis and New York are generally the least ready, according to a ranking of 30 major metropolitan areas by Ameriprise Financial Inc. The ranking, released yesterday, evaluated the survey responses of almost 12,000 adults about their preparations and attitudes towards retirement. Cordially, Thomas E. Space, CFP ADVISORS Financial Planning Group, LLC
100 Shoreline Highway, Suite B-211 Mill Valley, CA 94941 Phone: 415-331-9030 Fax: 415-331-9055 E-mail: [email protected] [email protected] www.gainerfinancial.com
November/December 2011
NEW CHANGES THAT CAN IMPACT YOUR ECONOMIC HEALTH!!
Roger’s Quick Tip
Social Security: Many are taking early benefits and costing themselves the 8% + your benefit increases each year from the time you turn 62 until you turn 70!
Roger L. Gainer ChFC is an Investment Advisor Representative providing advisory services through HFIS Inc., a Registered Investment Advisor. Gainer Financial & Insurance Services Inc. is not owned by or affiliated with HFIS and operates independently. California Insurance License #0E77978
THE TAX MAN IS COMING:
T
his is the time for you to do year- end tax planning. A few minutes spent before year’s end can save you thousands come tax time. Here are a few areas where you might get a tax surprise or have a tax opportunity. First, do you own mutual funds in a regular account (not an IRA, 401k, TSA, SEP, etc)? If so, you may be getting a large tax bill this coming January. After several years of strong gains,
The sell-off this past August and September caused many folks to sell shares, This, in turn, forced fund managers to sell some of their highly appreciated holdings to provide the cash to redeem the shares. That selling could create taxes for all shareholders of record, even if the
fund lost money (as many did) in the past year. To avoid the problem, you may wish to consider selling your fund prior to the end of the year. There are ways to determine the extent of the potential tax bite. Let us know if you want more details.
When Roger Speaks...People Listen Roger is doing a series of Lunch & Learn Educational Workshops for your Company or Group—Rotary, Lions, Investment Clubs, Friends, Etc.—on subjects that are very relevant to Today’s Economy. Here are just a few samples of topics he has available, but he can tailor them to meet your particular interests. Areas include: Thriving in today’s economy Understanding Your “Circle of Wealth” Taxes, Retirement and your Mortgage Risk & Volatility, How much risk should I take? How to pay for college and Retirement And whatever else might interest your group Call our office to schedule your Workshop, as our calendar for 2012 is filling up!
Page 2
What you need to know about Social Security This topic is coming up more and more. There are many opportunities to dramatically increase your social security benefits, especially if you are married. These options aren’t usually presented when you go to sign up for your benefits.
While there may be some changes upcoming to social security in the near future, it is important to maximize the benefits that you will collect. Many are taking early benefits and costing themselves the 8% + your benefit increases each year from
the time you turn 62 until you turn 70! In this environment, that is a good return on your money. If you are married, it is often “profitable” to have one spouse register, the other spouse take their spousal benefit and let their benefit
compound at the 8%+ factor then have both spouses switch positions when they turn 70. Confused yet? We can provide more insights if you would like to have more in depth information.
The Staff at Gainer Financial, Linda, Davi, & Roger Wish you all a Happy Holiday Season
I
Real Estate: To Sell or Not to Sell???
nterest rates are near historic lows; if you can qualify this will end up to be one of the best times to take care of that. For a variety of reasons, it has become much harder to qualify for mortgages and if you are interested, contact the office and we can bring you up to date on the current market and provide some tips and referrals that can help you lock in today’s low rates. We have software that can help you understand what the best loan option will be for your situation. The cost of a loan is not accurately reflected in the interest rate!! Beware of mortgage acceleration
(making more frequent or extra payments), most of the techniques being used actually increase the cost of your mortgage! Let us know if you want to compare different techniques for paying off your mortgage sooner. If you are considering selling your home or a second home in the next 3-5 years, now may be the best time to do this. I know what a tough decision it can be
to sell a home, especially one that you have been in for a while. I have spoken with many of you over the last few years so I know that many are considering downsizing or moving to someplace that requires less maintenance. I believe that we are currently in a relatively small window of opportunity to sell homes. There has been a moratorium on foreclosures that ended recently and a flood of millions of properties are now entering the foreclosure pipeline. This alone
will reduce property values in many neighborhood as banks sell these properties to get them off their books. In addition, mortgage rules are changing, which will make it harder for folks to qualify for mortgages, especially those that are over $417,000. While some areas will be hit harder than others, I feel strongly that there will be few exceptions to a further drop in prices over the next several years. Please contact me for any further information. Roger
Email #1: Subj: Safe Money Millionaire - Market History
Source: Crestmont Research
Above is a chart of the stock market from 1900 to 2010 depicting the stock market performance – Bull Market in Green and Bear Market in Red – As you can see, it’s performance was pretty impressive in the 50’s & 60’s, flat to negative performance in the 70’s (an era of Oil Embargo’s and Recession) and the biggest market boom of all in the
80’s and 90’s = 20 years of virtually straight up performance with an average annual rate of return of 17%. Do you know what fueled this phenomenon pushing the market higher and higher? It was the advent of the 401k, lower taxes on disposable income and deferred growth until you retired. The employee put in as much as they could, perhaps took more risk than they should have and even borrowed on their home equity to add more dollars to the stock market. Even cancelled cash value life insurance policies, replacing them with cheaper ones and investing the difference. How do I know this, because I lived through it. All of this growth was made possible by the 70+ Million Baby Boomers who were taking advantage of the tax laws and retirement savings plans to fuel the growth in the mutual fund industry. But what this chart doesn’t tell is that as this climb to higher growth levels of the stock market was happening, the “Boomers” were getting older (1946 to 1964) reaching age 65 in 2011. So picture a “Bell Curve” or more specifically half of a “Bell Curve” on this chart. The First half rising gradually as more and more retirement dollars are being added each and every year. Now picture the other half of this chart or “Bell Curve” as those “Boomers” begin to remove those retirement dollars each and every year with less and less employees contributing to their 401k or IRA plans. That’s right, more and more RED will start to show up year after year because it takes NEW dollars to push the market higher. There’s and old adage “A Rising Tide Raises All Boats”…as the sea pushes more water into a port, the level of the port swells lifting all boats. Conversely, as the sea ebbs from the port the level of the water shrinks. That’s what is going to happen to your retirement dreams if you simply sit on the dock of the bay and watch the sea of “Boomer” flow into retirement.
Let me show you how you can take charge of your own destiny and enjoy the peace of mind that comes with proper planning. 888-8137408 Cordially, Thomas E. Space, CFP ADVISORS Financial Planning Group, LLC
Email #2: Subject: Safe Money Millionaire approach to retirement planning “Generation Jobless” was how The Wall Street Journal put it. 19 Statistics About The Poor That Will Absolutely Astound You. #1 According to the US Census Bureau, the percentage of “very poor” rose in 300 out of the 360 largest metropolitan areas during 2010. #2 Last year, 2.6 million more Americans descended into poverty. That was the largest increase that we have seen since the US government began keeping statistics on this back in 1959. #3 It isn’t just the ranks of the “very poor” that are rising. The number of those just considered to be “poor” is rapidly increasing as well. Back in the year 2000, 11.3% of all Americans were living in poverty. Today, 15.1% of all Americans are living in poverty. #4 The poverty rate for children living in the United States increased to 22% in 2010. #5 There are 314 counties in the United States where at least 30% of the children are facing food insecurity. #6 In Washington DC, the “child food insecurity rate” is 32.3%. #7 More than 20 million US children rely on school meal programs to keep from going hungry. #8 One out of every six elderly Americans now lives below the federal poverty line.
#9 Today, there are over 45 million Americans on food stamps. #10 According to The Wall Street Journal, nearly 15 percent of all Americans are now on food stamps. #11 In 2010, 42 percent of all single mothers in the United States were on food stamps. #12 The number of Americans on food stamps has increased 74% since 2007. #13 We are told that the economy is recovering, but the number of Americans on food stamps has grown by another 8 percent over the past year. #14 Right now, one out of every four American children is on food stamps. #15 It is being projected that approximately 50 percent of all US children will be on food stamps at some point in their lives before they reach the age of 18. #16 More than 50 million Americans are now on Medicaid. Back in 1965, only one out of every 50 Americans was on Medicaid. Today, approximately one out of every 6 Americans is on Medicaid. #17 One out of every six Americans is now enrolled in at least one government antipoverty program. #18 The number of Americans that are going to food pantries and soup kitchens has increased by 46% since 2006. #19 It is estimated that up to half a million children may currently be homeless in the United States. Q. How could the most sophisticated, most dynamic, best capitalized, high tech enhanced country in history produce such an outcome? The answer is simple: Free Enterprise, that is capitalism, doesn’t give you what you want...It gives you what you earned… And it usually does so with such a long delay that few people connect the cause with effect.
Don’t delay anymore…retirement is right around the corner and an effective plan will give you what you deserve. Let the Safe Money Millionaire approach help you, today!
Cordially, Thomas E. Space, CFP
Email #3 80 MAY BE THE NEW 65 FOR RETIREMENT AGE, SURVEY SAYS November 16, 2011 (Bloomberg News) Americans are prepared to work longer in order to save enough for retirement, according to a survey by Wells Fargo & Co. About 76 percent of respondents said it’s more important to reach a specific dollar amount before retiring, compared with 20 percent who said it’s more important to retire at a given age, regardless of savings, according to the survey of adults with household incomes or assets from about $25,000 to $100,000. “Eighty is the new 65,” Joseph Ready, executive vice president of Wells Fargo Institutional Retirement & Trust, said in an interview at Bloomberg headquarters in New York before the survey was released today. “It’s a real sea change.” About 74 percent expect to work in retirement, according to the survey, with about 39 percent working because they’ll need to and 35 percent because they want to. And 25 percent of those surveyed said they expect they’ll need to work until at least age 80 because they don’t have sufficient savings. “People are starting to move toward understanding the different levers of what they’re going to have to do to make it in retirement,” Ready said. About 68 percent of those surveyed said they’re not confident the stock market is a good place to invest their retirement savings. About 45 percent of respondents said if they were given $5,000 they would buy a certificate of deposit, and 50 percent said they’d invest it in stocks or mutual funds. No Good Alternative “Even though there’s a lack of confidence, I don’t know that they see there’s a good alternative,” to investing in stocks, said Laurie Nordquist, executive vice president of Wells Fargo Institutional Retirement & Trust. The Standard & Poor’s 500 Index returned 1.32 percent this year through Nov. 14. One-year CDs yielded 0.35 percent and five-year CDs paid 1.19 percent on average as of Nov. 3, according to Bankrate.com, an online provider of consumer-rate information and a unit of Bankrate Inc.
Survey respondents had saved a median of $25,000 towards retirement and estimated they’d need a median of $350,000 to support themselves in retirement. About 42 percent expect to receive a pension or already receive one. “The numbers don’t add up,” Nordquist said. “The gap is probably larger than what they self identified.” Those surveyed expect to withdraw about 18 percent on average from their savings each year in retirement. “We would recommend typically 4 percent or less, in terms of withdrawals,” Nordquist said. About 57 percent of respondents said they’re confident they’ll have saved enough for retirement. “You used to just save blindly, but I think the blinders are coming off,” Ready said. Geographic Attitudes Wells Fargo hired Harris Interactive Inc. to survey 1,500 Americans aged 25 to 75 by phone in August and September. San Francisco-based Wells Fargo is the fifth-largest administrator of 401(k) retirement assets, overseeing about $117 billion as of 2010, according to Cerulli Associates, a research firm based in Boston. Fidelity Investments is the largest administrator with about $824 billion in assets. Residents of the San Francisco and Sacramento, California, metropolitan areas are generally the most ready for retirement, and residents of Indianapolis and New York are generally the least ready, according to a ranking of 30 major metropolitan areas by Ameriprise Financial Inc. The ranking, released yesterday, evaluated the survey responses of almost 12,000 adults about their preparations and attitudes towards retirement. Cordially, Thomas E. Space, CFP ADVISORS Financial Planning Group, LLC
100 Shoreline Highway, Suite B-211 Mill Valley, CA 94941 Phone: 415-331-9030 Fax: 415-331-9055 E-mail: [email protected] [email protected] www.gainerfinancial.com
November/December 2011
NEW CHANGES THAT CAN IMPACT YOUR ECONOMIC HEALTH!!
Roger’s Quick Tip
Social Security: Many are taking early benefits and costing themselves the 8% + your benefit increases each year from the time you turn 62 until you turn 70!
Roger L. Gainer ChFC is an Investment Advisor Representative providing advisory services through HFIS Inc., a Registered Investment Advisor. Gainer Financial & Insurance Services Inc. is not owned by or affiliated with HFIS and operates independently. California Insurance License #0E77978
THE TAX MAN IS COMING:
T
his is the time for you to do year- end tax planning. A few minutes spent before year’s end can save you thousands come tax time. Here are a few areas where you might get a tax surprise or have a tax opportunity. First, do you own mutual funds in a regular account (not an IRA, 401k, TSA, SEP, etc)? If so, you may be getting a large tax bill this coming January. After several years of strong gains,
The sell-off this past August and September caused many folks to sell shares, This, in turn, forced fund managers to sell some of their highly appreciated holdings to provide the cash to redeem the shares. That selling could create taxes for all shareholders of record, even if the
fund lost money (as many did) in the past year. To avoid the problem, you may wish to consider selling your fund prior to the end of the year. There are ways to determine the extent of the potential tax bite. Let us know if you want more details.
When Roger Speaks...People Listen Roger is doing a series of Lunch & Learn Educational Workshops for your Company or Group—Rotary, Lions, Investment Clubs, Friends, Etc.—on subjects that are very relevant to Today’s Economy. Here are just a few samples of topics he has available, but he can tailor them to meet your particular interests. Areas include: Thriving in today’s economy Understanding Your “Circle of Wealth” Taxes, Retirement and your Mortgage Risk & Volatility, How much risk should I take? How to pay for college and Retirement And whatever else might interest your group Call our office to schedule your Workshop, as our calendar for 2012 is filling up!
Page 2
What you need to know about Social Security This topic is coming up more and more. There are many opportunities to dramatically increase your social security benefits, especially if you are married. These options aren’t usually presented when you go to sign up for your benefits.
While there may be some changes upcoming to social security in the near future, it is important to maximize the benefits that you will collect. Many are taking early benefits and costing themselves the 8% + your benefit increases each year from
the time you turn 62 until you turn 70! In this environment, that is a good return on your money. If you are married, it is often “profitable” to have one spouse register, the other spouse take their spousal benefit and let their benefit
compound at the 8%+ factor then have both spouses switch positions when they turn 70. Confused yet? We can provide more insights if you would like to have more in depth information.
The Staff at Gainer Financial, Linda, Davi, & Roger Wish you all a Happy Holiday Season
I
Real Estate: To Sell or Not to Sell???
nterest rates are near historic lows; if you can qualify this will end up to be one of the best times to take care of that. For a variety of reasons, it has become much harder to qualify for mortgages and if you are interested, contact the office and we can bring you up to date on the current market and provide some tips and referrals that can help you lock in today’s low rates. We have software that can help you understand what the best loan option will be for your situation. The cost of a loan is not accurately reflected in the interest rate!! Beware of mortgage acceleration
(making more frequent or extra payments), most of the techniques being used actually increase the cost of your mortgage! Let us know if you want to compare different techniques for paying off your mortgage sooner. If you are considering selling your home or a second home in the next 3-5 years, now may be the best time to do this. I know what a tough decision it can be
to sell a home, especially one that you have been in for a while. I have spoken with many of you over the last few years so I know that many are considering downsizing or moving to someplace that requires less maintenance. I believe that we are currently in a relatively small window of opportunity to sell homes. There has been a moratorium on foreclosures that ended recently and a flood of millions of properties are now entering the foreclosure pipeline. This alone
will reduce property values in many neighborhood as banks sell these properties to get them off their books. In addition, mortgage rules are changing, which will make it harder for folks to qualify for mortgages, especially those that are over $417,000. While some areas will be hit harder than others, I feel strongly that there will be few exceptions to a further drop in prices over the next several years. Please contact me for any further information. Roger
