I got out when I saw a huge portion of my portfolio disappear in a few short weeks. I still remember the feeling and I never want to feel it again. I felt like I had no control. People told me to “hold in there” and it would come back. That thought process could get you into quite mess financially.

But what if you could actually “participate” in the market ups and not in the downs? So when the market dropped like a rock in 2008, your money didn’t go down.

This follows one of our principles of wealth: Don’t lose your principal.

There are ways to “participate” in the market ups but not the downs. It’s called the indexing strategy and it can happen it a cash value life insurance or annuity contract.

And, if done properly, they can also be set up to give you a GUARANTEED INCOME FOR LIFE.

Which one would be right for you? Well, that depends on your situation.

It’s a pretty neat process and it’s great for those who still want to take advantage of the market ups, but still have their money protected when the market drops. It is probably going to be a great alternative over the next few years if the market doesn’t go up every year, but stays choppy. If you were to have your money directly in mutual funds or stocks, you may have to experience the stock market roller coaster and may not end up with a gain at all.

With the indexing strategy you can actually protect your money, grow it securely and set it up to participate in the markets ups, but not the downs.

In the next blog post I’ll explain it a little more in detail. And look out for a video Brett and I will be doing about it in the next few days.

Talk soon,

Ethan Kap
True Financial Age

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Financial alternatives are more important than ever now that the CBO reporting this last week that Social Security will effectively run a deficit of 45 Billion dollars in 2011. Now more and more people are realizing the truth about their retirement…

…they don’t want to and can’t depend on the government.

Check out this statistic:

“Excluding interest, surpluses for Social Security become deficits of $45 billion in 2011 and $547 billion over the 2012–2021 period,” the CBO reported.

45,000,000,000 deficit?

Doesn’t sound like something we can depend on for retirement does it?

As far as preparing for retirement goes, what should we be focused on?

A big number in the nest egg that to live off of the interest? Sure that’s nice.

But what about a simple a monthly income you can count on and can be assured you can never outlive most important?

Ultimately creating an income, a monthly check that always comes, guaranteed, without concern for what the stock market, real estate market, or economy is doing…is what most people really want and need.

If you knew that you were going to get a check for 5 or 10 grand every month for the rest of your life, would that give you some peace of mind?

So with more companies, cities and states reducing or eliminating pensions and social security going bankrupt where should we turn for retirement options.

Lets turn back the clock to see what history teaches about the subject.

After the great depression of 1930’s and 40’s when many, many people lost a substantial amount of money in the market, people turned to the best stewards of money in American history…

Not the banks…over 10,000 went broke during the great depression years.

Not Wall Street…we all know how great they are at keeping our money safe.

Not the government…we don’t even need to address that. (everything they run seems to be broke or in the negative.)

So where did we turn as Americans?

The life insurance industry.

That’s right. And I can already hear the boo birds, I can hear Suze Ormans voice saying how expensive and how horrible cash value insurance is.

(Nevermind the fact that she’s the spokes person for TD Ameritrade. No conflict of interest there huh?)

But lets get one thing straight, life insurance companies are some of the oldest and most secure companies in the world.

One of the companies we work with has been in business for 300 years and actually insured Sir Issac Newtons home all those years ago!

According to Barry Dyke, Author of Pirates of Manhattan, throughout history life insurance companies have kept policy holders money safe 99.9% of the time.

In fact in his book he also says “from the 1930’s to 1970’s life insurance companies were the primary custodians of American savings.”

Lets get back to the issue at hand…what to do when thinking about your retirement.

In order to build your own retirement income, that you can’t outlive, and is guaranteed every month, insurance products like annuities or cash value life insurance.

Annuities can include an income rider that will guarantee an income for life regardless of how long you live.

Turning to your own planning, with companies who have a track record of hundreds of years can be the smartest thing you can do.

To learn more request a 101 Plan Blueprint, to learn more about how an annuity can guarantee an income for life.

“The 2008 financial crisis was an avoidable disaster caused by widespread failures in government regulation, corporate mismanagement and heedless risk-taking by Wall Street, according to the conclusions of a federal inquiry.”1

WOW! So the truth finally comes out.

Let see. From what I understand in this New York Times article is that:

1. Government is choking us with regulation.
2. Corporations like BANKS and MUTUAL FUNDs mismanaged things.
3. Wall Street is like a Rolette Table with their “heedless risk-taking.”

Hmmm. This isn’t new. In fact, my eyes were opened when I read a fabulous book by Barry Dkye called the “Pirates of Manhattan.” A definite read for every American! I’ve said it before; I bought into the propaganda Wall St. pushed for years.

I’ve decided to not play by their rules any longer. THEY put all the risk on my shoulders, yet they “guarantee” my security.

We all know that is a bunch of baloney.

I don’t remember sipping pina coladas in my Hampton beach house during the financial crises. I remember the gut wrenching feeling of seeing my investments tank each day. I recall the sickening feeling of having my principal getting eroded because of Wall Street’s “heedless” risk taking. I actually researched the stocks and investments I purchased, however I disobeyed one of the key principles to have a predictable plan to wealth…Don’t Lose Your Principle.

I have since changed by financial picture by building it the right way. People may think I am a little like the tortoise, but as I recall he actually won in the end. Sure, I still get the urge to buy the next water cooler stock or emerging trend I may see. One day, when I have the available funds to invest then I may do that again. But not until I have a super secure stable foundation built.

In the New York Times article it also says “… the Financial Crisis Inquiry Commission accuses several financial institutions of greed, ineptitude or both, some of its gravest conclusions concern government failings, with embarrassing implications for both parties.”2

Another WOW. Some of the gravest conclusions concern government failings? Let’s be honest, doesn’t this make you a little upset? Here’s what it does for me. As I was pursuing the articles on Yahoo’s finance section, I read Ally Financial is interviewing bankers for IPO sources. Now this is the same bank that received 17.2 billion dollars in bailout money. I realize part of this strategy is to help the government to make some of its money back from the bailout. However I don’t recall receiving a bailout in my business, and then later having government help to do an IPO.

This is just one more reason to look for an alternative to Wall Street’s greed and government piracy.

Talk soon,

Ethan Kap

To request a free 101 blueprint analysis click here.

1. Sewell, Chan. “Financial Crisis Was Avoidable, Inquiry Finds.” New York Times 26 Jan, 2011. Jan 27, 2011.

2. Sewell, Chan. “Financial Crisis Was Avoidable, Inquiry Finds.” New York Times 26 Jan, 2011. Jan 27, 2011.

“Investors were encouraged by President’ Barack’s call to overhaul taxes on business and a jump in new home sales in December,”1

The stock market is coming back from a huge drop. This reminds me of the roller coaster rides at Disneyland. You get all excited as you inch your way to the top, only to have a quick, and stomach wrenching experience to the bottom.

I hope the ride to top will continue so all those who lost money could gain it back. However, what we hope for and help Americans discover here at True Financial Age is the importance of building a wealth foundation the right way — so a portion of your money is growing safe and secure. Plus , if you build the foundation correctly, you can have a guaranteed income stream for life.

Could your wealth foundation have a portion of money in the stock market? Sure! However, that should come only after you taken the steps to build the proper foundation. (See the triangle below)

What truly scares me is that I know debts have to be repaid and we all know the national debt is out of control. The mess we are in is far from over which probably means we are going to see and experience the stock market roller coaster for the next few years. Do you still want to continue playing Wall Street roulette with your money?

Sadly many will since they still buy into the media propaganda that Wall St. and banks have their best interests at heart. I would love to do a documentary once day of all the traders and bankers who walk away will money while the average American loses.

I have studied finance and money for many years. Honestly I actually wanted to be an investment banker during my college years. Fortunately that door never opened. For years I followed the conventional wisdom of putting all my money at risk, and unfortunately lost quite a bit of my money in the stock market drop.

So for awhile people may be thinking the economy is doing better and they will be on their way to making millions risking it all on the Wall Street roller coaster. Then many will come crawling back when Mr. Market crushes American’s dreams and goals once again. Please don’t let that be you. I plead with you to start the discovery process of learning how to build your wealth foundation the right way. . it’s not a get rich scheme, but honestly how many of those work anyway? Did it work for Bernie Madoff in the end? And his clients? Think about the peace of mind you will experience when you have a secure foundation that secures your income stream for life. It’s a powerful feeling.

You should start the process today and request a free 101 blueprint analysis. If you feel your case is extra special, let us know and we can make sure to help you in the best way. The process starts with a conversion. No pressure. Just a simple conversation.

Start your discovery process today.

1. Associated Press, January 26th, 2011. “Dow breaks through 12,000, for first time since 2008

Now we’re faced…out of necessity more than anything, to look for financial alternatives to provide for our retirement.

Why?

Simple the 3 legged stool is crumbling. Here’s the deal.

The 3 legged retirement was made up of
1. Pension plans from companies, governments, etc.
2. Social Security
3. Private Savings

Lets look at each one for a second.

1. Pensions from your jobs.

We’ve all seen these disappear over the years because they are so incredibly expensive for companies, and governments alike.

Elizabeth Warren, Law Professor at Harvard said:

“There’s no business in America that isn’t going to figure out a way to get rid of these benefit promises.”

and she was right. Just today in the Wall Street Journal Mary Walsh wrote

“Policy makers are working behind the scenes to come up with a way to let states declare bankruptcy and get out from under crushing debts, including the pensions they have promised to retired public workers.”

States across the country have over extended themselves, are in massive debt, and are looking for any way possible to get out from under it, and now like many of the large companies have already done, they are looking to avoid paying the pensions of past workers.

So the pension leg has long been broken, the next leg you probably already know is busted up is Social Security.

Michael J. Astrue, the commissioner of Social Security Said in a letter recently

“In 2016 we will begin paying more in benefits than we collect in taxes. Without changes, by 2037 the Social Security Trust Fund will be exhausted and there will be enough money to pay only about 76 cents for each dollar of scheduled benefits. We need to resolve these issues soon to make sure Social Security continues to provide a foundation of protection for future generations.”

need I say more?

Depending on Social Security for retirement might not be the smartest thing to do either…

So that leaves us with the last leg; personal savings.

I’ll cover this, and how to set yourself up to have a guaranteed income for life, that you can never outlive, in another blog post.

To work with a True Financial Age advisor who can help you build an income for life, click here for a 101 Plan Blueprint.

Most of us have heard that before but how does it really apply in your daily life when it comes to your personal finances? Alot of people are searching for financial alternatives right?

Go with me on a journey for a moment…

Imagine you are sitting on a lovely tropic beach.

It’s an island in fact, that you have all to yourself, with you and your family.

You’ve been living there for some time, enjoying the sun, sand, tropical drinks, and beautiful weather.You get pina colada’s brought to you when you want them and fresh fruit is always on the menu…for free.

Everything is great, you have every you could ever need, and life is good.

Then off in the horizon you see this puff of smoke and you start hearing a noise coming from a boat approaching.

As the boat approaches you see me at the helm driving my stinky, old, rusty, fishing boat.

I pull up to do the dock and you can smell the nasty fish smell coming from the boat. The paints chipped off, the thick black smoke is covering the air and it’s just not a very pretty sight.

Your starting to get irritated that some stranger in his nasty fishing boat is cramping your style, and disrupting your wonderful life.

Then things start getting interesting.

“You need to come with me” I shout waving my arms as I’m running toward you.

What are you thinking about right now…?

You’re probably saying, who is this nut case, and why is he interupting my day at the beach.

Are you ready to jump on the boat with me?

Not on your life.

“Look, I know this sounds crazy, but i’m a geologist and this island is about to blow up, it’s on top of a volcano. You need to come with me.

Are you convinced now?

Probably not even close.

Then the ground shakes a little, almost like an earthquake.

ready to leave island paradise behind?

hmm, probably not.

“Come with me for a moment” I implore.

So you get off your chair and we start walking around the side of the island.

Then while we’re walking we come upon a crack in the earth and you can smell the sulfur gas and your eyes are starting to hurt a bit.

We keep going aways, and I then we come around the corner…and we stop dead in our tracks.

There is a huge gaping crack in the earth with hot lava spewign out of it violently.
The earth shakes again and the gas is so strong you can’t stand it.

Now are you ready to get on my boat?

“When can we leave you say.”

“Are you sure? It’s stinky. It’s nasty, it s a diesel.”

We rush back to the boat, load the family up on the boat and head out to sea.

You turn back to for one last look at your island paradise.

then “BOOM!!”

the Island explodes, erupting into a ball of flames and a huge plume of fire and smoke billows into the air like a nuclear explosion.

Now what are you feeling as you ride away from the island?

Now think about that island as your current financial situation and retirement.

Most people simply don’t think about their finances and especially retirement because they are busy working day to day, they have the things they need, and they don’t want to face the reality of how bad things are.

But when we really look at where we are currently and where we are ultimately going to end up…the island is often blown up, and reality sets in…it’s time to make a change.

One of the best ways to get that process started is with a 101 Plan blueprint analysis. In the analysis we help see where you are now, what your retirement income is projected to be, and how long your money will last into retirement.

To talk with a True Financial Age advisor and your 101 Plan blueprint Today.

(Story credited to Peter Jeppson of Money Mastery)

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Many people mistakenly believe that the stock market recovery since 2008 means things are on the rebound. Unfortunately, we might just be in the EYE of the storm.

In 1940 the market took another huge hit, thanks to the high taxes and anti-business policies of the government.

Starting to sound familiar?

During the 1930s and 1940s, we saw a similar drop and recovery… before the markets crashed all over again.

In fact, the situation is eerily similar.

This is one of the scariest graphic predictions I’ve seen in a long time. It shows an overlay of what happened in the stock market in 1937 compared to 2008.

In both situations, we saw big crashes, of about the exact same magnitude… then a big recovery, again of about the same size.

But what will happen next?

Well, if history is any indication, we are likely to see another drop in the market, exactly like what happened 70 years ago.

And with all of the problems left unresolved in our economy today, it could certainly happen again, especially if Washington continues with it’s current tax and spend policies.

As The Wall Street Journal reported:

“We are following a path eerily similar to that of 1937. The cumulative effects of massive hikes in personal and corporate tax rates, severe monetary tightening, and aggressive business-bashing by the Roosevelt administration tipped the economy into the “depression inside the Depression.” From there, stocks were in for the longest and second-deepest bear market in history.”

What will happen to your portfolio, what will happen to your income, what will happen to 401 (k)’s and mutual funds?

Well I don’t have a crystal ball, but it doesn’t take a rocket scientist to look at history and learn from it.

What’s the solution?

One solution is to turn to the places where our parents and grandparents did years ago after being burned in the market.

A 101 Plan using a cash value insurance policy can keep your money guaranteed out of the market, you can even roll 401k money into these plans without penalties as long as you do it correctly.

Our True Financial Age advisors are trained on how to do these types of rollouts.

If you have money in a 401k, IRA or mutual fund, nows the time to prepare for the future.

Get a 101 Plan Blueprint Today

Of course lasting even a few years in the cutthroat TV business is tough to do…but over 50 YEARS! That’s impressive by anyone’s standards.

He’s been successful, not by luck but by living each day based on the principles of hard work. He’s often referred to as the hardest working man in show business.

Contrast his long standing success with the reality TV stars of today who are here today, gone tomorrow. Sure they get their 15 minutes of fame, but without success principles to build on, they often fade as fast as they came.

When it comes to our money, I think we can see similar patterns. There are those ‘millionaires next door’ who build their wealth on sound financial principles, with hard work, and smart financial decisions. They keep their money safe, and refuse to risk it or gamble it away.

Then you have the folks who win the lotto or come into a windfall like professional athletes who end up losing it all and end up millions in debt.

When it comes to growing wealthy, it’s not complicated. The success principles have been around for hundreds of years, the problem is we lose sight of those principles in the endless fog of gurus, advice, information and financial products.

But if you boil it down to a simple process, it really comes down to putting away at least 10% of your income each month into a safe, secure place and then having your money go to work for you.

A 101 Plan cash value insurance policy is one of the oldest wealth growth tools in our nation’s history, and, like Regis Philbin, it has a track record that is hard to beat.

Life insurance companies have been around for hundreds of years, in fact one of our main carriers is over 300 years old and actually insured Sir Isaac Newton’s home!

401(k)’s were invented in the 1970’s. The S&P 500 index has a typical turnover of between 1% and 9% per year.* This effectively means the majority of the companies in the S&P 500 are turning over every 10 years or so.

So, when it comes to your retirement, your financial safety, your wealth, who do you want to be, the reality star with 15 minutes of fame…or build a long standing foundation of wealth that will last your lifetime?

Get your 101 Plan analysis here.

* “S&P 500 Turnover Data“. Standard & Poor’s. The McGraw-Hill Companies, Inc. Retrieved 2007-02-20