Written by Dani, February 09th, 2012
We believe that the most successful people are on top of the issues of the day. Being well-informed and staying well-organized will help you to succeed, so for the next few weeks we will be outlining six exercises for you to stay informed and ready to make good decisions. Those six exercises are:
- Making a calculation of your net worth
- Taking inventory of financial assets
- Understanding your cash flow projections
- Examining your expenses
- Making sure you have an updated estate plan and living trust
- Taking stock of all insurance policies – health, life, long term care, annuities, etc.
Five weeks ago, we took less than an hour to calculate your net worth. Four weeks ago, we talked about taking inventory of your assets. Three weeks ago, we figured out how to understand your cash flow projections. Two weeks ago, we looked at your expenses, and last week we talked about wills, trusts and guardianship. If you missed any of these exercises, please go back and listen to those previous podcasts for more detailed information, or you can read the summaries of each exercise on our blog.
This week, we are talking about insurance: health insurance, life insurance and annuities. Insurance is an essential expense, and we encourage everyone to take a look at what you own, what you have and what you need.
There is such a thing as being “over-insured”. Sometimes life insurance can move from being an asset to becoming a liability, so getting a professional to look over your life insurance and what you need is essential. Todd Clucas is our insurance expert on staff and can help with any issues at 888-300-3684.
Annuities are a very powerful tool, but we believe that they are sometimes over-sold. Not everyone needs an annuity, but it’s important to know if you do need that option, and whether it’s worth the investment. Again, please get in touch with us if you have any questions about this or any other part of our personal finance exercise series.
Once you know what you have to can set clear, reachable goals. Tune in next week for more on Doug Fabian’s Monday Market Update. (Also, if you read this blog and enjoyed it, listen to Doug’s podcast this week for even more details on these topics, and please share this information with others who might benefit from our perspective.)
Written by David, May 30th, 2009
Join me at the American Association of Individual Investors (AAII) seminar on Saturday June 20, 2009 at the Skirball Center in Los Angeles, CA.
My topic will be: ETF Strategies in a Difficult Market.
- How to generate income from Exchange-Traded funds
- How to build a portfolio of ETFs around an investment theme
- How to use inverse and leveraged ETFs ro your advantage and when to avoid them
Click here for event details and information on how to register.
I look forward to seeing you there!
Written by David, May 28th, 2009
The just-released 2009 Social Security Trustees Report shows that the recent economic woes have had a big negative impact on the Social Security budget. The report projects that by 2016 Social Security spending will exceed the revenue it receives each year from all of us.
But just how bad is the situation?
Social Security is a pay-as-you-go system, which simply means that the government takes your money and gives it to current recipients of Social Security benefits. The government, in effect, guarantees that it will confiscate (via taxation) money from one block of people (workers) and give it to another block of people (retirees).
Does this type of investment architecture sound familiar to you? If you are reminded of the Bernie Madoff Ponzi scheme, then you and I are on the same page. In essence, the Social Security system is basically just a very big version of a Ponzi scheme, and as long as the numbers work out everything should be okay.
But what if they don’t work out?
In the 1950s, the Social Security system’s worker-to-beneficiary ratio was approximately 16.5-to-1. However, now that the average lifespan has increased, the worker to beneficiary ratio has dropped to 3.1-to-1. Within the next two decades that ratio is expected to drop to 2.1-to-1.
I think you can see that in order to keep its Ponzi scheme going, there will either have to be more revenue raised—i.e., an increase in the Social Security tax—or a decrease in Social Security benefits, or a combination of both.
So I ask you this, why would you trust your retirement to a government-sanctioned, Madoff-style investment scheme?
The way I see it, the only person you can trust to look after your retirement is you, and that means it’s imperative that you take responsibility for stewarding every dollar you make.
Don’t let your retirement be determined by a Ponzi scheme. If you need help managing your retirement assets, why not consider active management of your income generating assets? At Fabian Wealth Strategies we have designed an income portfolio to help you preserve capital and generate the retirement income you need to live the life you deserve.
For more on how you can start maximizing your retirement efforts, click here.
Written by David, March 31st, 2009
Today’s stock market beast is not the same animal it was a decade ago. In fact, the pace of change has been relentless in recent years, and even the most conscientious individual investor has had a tough time keeping up with the all of the financial market upheaval.
If you’re managing your own money, are you getting the results you think you should?
Or, is your money being managed by a stockbroker or investment advisor who insists
you “buy and hold” stocks even while Wall Street—and your portfolio—get savaged by
a malicious bear?
Now more than ever, individual investors need expert guidance and continuous “eyes
on” monitoring of all of their positions, not just occasionally, but every trading day. The
simple fact is that in today’s market environment, you’ve got to have an experienced
ally on your team if you want to successfully navigate these treacherous market seas.
At Fabian Wealth Strategies, we believe that innovation is at the forefront of each
client’s success.
Click here to learn more about how Fabian Wealth Strategies can help you manage your assets according to your goals in a simpler, easier and more cost-efficient way than ever before.
