Market Taking a blood bath

Stocks are heading for an absolute bloodbath.

Yesterday, we took out THE line for stocks, DESPITE
the ECB promising to do more.

The clock is ticking on a collapse.

Indeed, we could very well see another 2008-type event.

Corporate debt is back to 2007 PEAK levels.
Stock buybacks are back to 2007 PEAK levels.
Investor bullishness is back to 2007 PEAK levels.
Margin debt (money borrowed to buy stocks) is at 2007 PEAK levels.
Investor complacency is at a record LOW.

We have the very makings of a Crash.

$1000 Referall Program Ends 8/30!

You are going to want to make sure you take full advantage of our summer referral program where you refer a friend, family member or coworker and if they become a client, you will receive $1000 in cash. Now isn’t that a great way to close out summer?

I know we said we would be taking a break from the news, but this article was just so compelling I had to share it with you…

Sincerely,

Warren

Social Security and More Creative Accounting

Friends,

This week we see more examples in the news about our government’s creative accounting practices. Depending on which way you slice up the bread, we stil only see an adjustment well under the 2%. It’s amazing when you do a little digging on the issue what you find… Read on…

COLA Program

Security Administration announced last week. However, the program’s COLA will be below 2% for the fourth time in the last 5 years. Following that news, House Ways and Means Committee Republicans were misleading when they released a statement on Monday, saying, “If the more accurate chained CPI was used to determine the 2014 cost of living increase, seniors would see a 1.7% increase as opposed to this year’s increase of 1.5%.”

$1000 Referall Program Ends 8/30!

You are going to want to make sure you take full advantage of our summer referral program where you refer a friend, family member or coworker and if they become a client, you will receive $1000 in cash. Now isn’t that a great way to close out summer?

For the next few weeks you will not see any newsletters as we are taking a break from our weekly program. We will resume in September and hope you enjoyed the summer educational program on Social Security. As always, I am here for you to answer any questions you may have. I am wishing you an enjoyable, safe and happy August.

Sincerely,

Warren

Invisible Social Security Cuts

Friends,

After weeks of discussing the Federal Government accounting practices and the strain caused by Baby Boomers and our expanding debt and an AP wire article last week about the Social Security offices close, I was not at all surprised to see the following headlines coming across the Huffington Post about even more cuts- many of them we don’t see or hear about until it affects us. Read on…

Invisible Social Security Cuts: Now You See Them, Now You Don’t

The unseen hand of antigovernment ideology can be found everywhere nowadays — even in your mailbox. The proof is in what you won’t find there, like your annual statement of earned Social Security benefits.

The government stopped mailing those out in 2011.

It’s also getting a lot harder to find Social Security field offices, or even to find someone to pick up the phone, as the Social Security Administration enters into yet more rounds of steep budget cuts.

Social Security customer service: Now you see it, now you don’t.

The most efficient benefit program in the country?

The question is, why? Social Security may be the single most efficient benefit program — public or private — in the country. Its annual operating expenses are less than 1 percent of overall costs, a figure which private sector programs should envy. In fact, that percentage has plummeted over the last fifty years, from 2.1 percent in 1963 to 0.8 percent today. That figure could be increased significantly without substantially changing the plan’s overall fiscal outlook.

(By comparison, 401(k) plan managers charge an average of 2.5 percent, and that’s not counting enrollment costs and other expenses which are borne by employers — and they performed no better than the stock market as a whole on average.)

It’s certainly not a ‘deficit’ issue. Social Security is completely self-funded from contributions earned by benefit plan members. It draws no funds from the overall federal budget. That means the only people hurt by these budget cuts are the same people who paid for these benefits — and the services needed to deliver them — in the first place.

An ideological crusade

All the evidence points to one conclusion: these cuts are motivated by ideology, not genuine concerns. The SSA’s administrative expenses don’t affect the Federal debt, and are a small fraction of Social Security’s overall costs. These cuts aren’t actuarially warranted, since they only minimally affect the program’s long-term fiscal outlook.

Congress has cut 14 out of the last 16 SSA budget requests. There’s only one rational explanation for that: a hostility toward government itself, combined with the determination to place more public resources in corporate hands through “privatization.”

It’s a simple game. Slash funding for well-run government programs, then use the resulting chaos as “evidence” that “government isn’t the solution, it’s the problem.” It’s simple — and relentlessly cynical.

The damage done

In an excellent report for Reuters, Mark Miller surveyed the damage this strategy has caused: “… sharp reductions in SSA staff and field service offices. Nationwide, staff is down to 62,000 from a peak of 70,000 in the 1990s. Since fiscal 2010, the agency has consolidated 92 field offices into 46 offices and has closed 521 contact stations (mobile floating service facilities that set up shop in other government offices).”

Busy signals on the SSA’s phone lines doubled last year.

Social Security recipients — including the disabled, the elderly, and children — pay a high price for this ideologically motivated crusade. That tells us that the people who govern us can be extraordinarily insensitive to the human costs of their actions. Many disabled and elderly Social Security recipients depend on field offices, and the workers in them, to help them navigate the system.

More than two-thirds of the Social Security Administration’s 66,000 employees work in the field offices. (They’ll pay a human cost for the closings, too. Why are allegedly “pro-jobs” politicians eliminating jobs instead?)

The wait time for disability hearings is already an unacceptably high 396 days as of last September, according to the SSA’s own annual report, and it gets worse every year. As the report notes: “… sustained growth in hearings requests and a recent inability to hire additional judges from the administrative law judge register have slowed our progress in reducing the hearings backlogs.”

A tangled web

The rationale most frequently given for these cuts is that people can now access these services online. But seniors are far less likely to use the Internet than other Americans. Only 57 percent of people over 65 are online, according to the latest Pew study, as opposed to 87 percent overall. Minorities and lower-income households are also far less likely to use the Internet, adding a discriminatory element to these decisions.

What’s more, there is some evidence which suggests that elderly Americans are especially reluctant to provide or receive personal information through the Internet. (There is also some evidence that their concerns are justified.)

Here’s how cynical this game gets: The very same Republicans who are using healthcare.gov’s problems as proof that “government doesn’t work” are driving an ever-increasing share of Social Security’s administration onto the Internet — and then underfunding that effort.

See where this is going?

Customer disservice

Perhaps trying to make the best of a bad situation, acting SSA commissioner Carolyn Colvin sounds overly optimistic when forecasting the impact of this shift. “We’ll … need face-to-face services for some people,” she told Miller, “but most customers will prefer to interact with us online or by phone.”

The latest services slated for elimination are Social Security number printouts and benefit verification forms. These services are most needed by lower-income recipients who must provide them when applying for other forms of assistance. These are precisely the recipients who are least likely to have Internet access (and we already know that busy signals have doubled on SSA customer service lines).

We were also told with great fanfare that eliminating the mailing of annual statements would save $70 million a year. But, as Michael Hiltzik of the Los Angeles Times notes, that is a tiny number — roughly 1 percent of an administration budget that is itself a small percentage of total costs. A cynical observer might conclude that one reason for ending this practice is to prevent Americans from noticing the change if and when Social Security’s benefits are cut against their will.

(And when it comes to the conservative assault against Social Security, which is sometimes joined by members of both parties, even the most idealistic among us is tempted to become a “cynical observer.”)

Looking for a champion.

Why hasn’t this become a rallying cry? These cuts hurt the elderly, the disabled, and low-income Americans especially hard. They’re reducing the budget just as the baby-boom generation ages into retirement, bringing years of increased demand for these services.

There’s only one rational conclusion: They want problems, to build momentum for Social Security privatization.

Occasionally elected officials will attempt to intercede on behalf of their constituents, as with this letter from three New York members of Congress. It says in part: “The proposed closing of four Social Security offices — in Amherst, Bronx Hub, Kingston, and Williamsburg, New York — threaten the promise Congress made to provide personal assistance to seniors and Americans with disabilities in these areas.”
Unfortunately they’re up against a majority of their colleagues. Even worse, their cause lacks national champions. This sounds like an ideal election-year issue for Democrats, but so far they’ve been disappointingly quiet on the subject. Unless something changes, these cuts will take place as scheduled — with more coming next year

You can see how things are changing with the strain Baby Boomers are putting on our already overburdoned system. The time is now to take care of your future and not rely on anyone else! And don’t forget our Summer Cash bonus which can go right into your pocket. Remember me to your family, coworkers and friends and earn your summer referral bonus of $1000 cash.

Have a great week,

Warren

Social Security Offices Close as Baby Boomers Age

Friends,

After four weeks of discussing the Federal Government accounting practices and the strain caused by Baby Boomers and our expanding debt, I was not at all surprised to see the following headlines coming across the AP Wire. Read on…

Social Security closes offices as baby boomers age

WASHINGTON (AP) — Budget cuts have forced the Social Security Administration to close dozens of field offices even as millions of baby boomers approach retirement, swamping the agency with applications for benefits, a senior agency official told Congress Wednesday.

Better Internet access and more online services are easing the transition, said Nancy Berryhill, the agency’s deputy commissioner for operations.

“We are fully committed — now and in the future — to sustaining a field office structure that provides face-to-face service for those customers who need or prefer such service,” Berryhill told the Senate Special Committee on Aging. “We also understand, however, that customer expectations are evolving due to changes in technology, demographics and other factors.”

Senators appeared unconvinced.

“The fact of the matter is, millions of seniors and disabled Americans are not accustomed to doing business online,” said Sen. Susan Collins of Maine, the top Republican on the Aging Committee. “Even as computer and broadband technologies become more widespread, the idea that the Social Security Administration can serve beneficiaries primarily online ignores the very real needs of the senior and disabled populations.”

The committee held a hearing Wednesday after issuing a bipartisan report showing that Social Security has closed 64 field offices since 2010, the largest number of closures in a five-year period in the agency’s history.

In addition, the agency has closed 533 temporary mobile offices that often serve remote areas. Hours have been reduced in the 1,245 field offices that are still open, the report said.

Nancy A. Berryhill, the Social Security Administration’s deputy commissioner for operations.

As a result, seniors seeking information and help from the agency are facing increasingly long waits, in person and on the phone, the report said.

“They don’t do any kind of analysis on what would happen to a community when their field office closes, including figuring out how the most vulnerable populations would make their way to the next-closest office,” said Sen. Bill Nelson, D-Fla., chairman of the Aging Committee.

The closings come as applications for retirement and disability benefits are soaring, a trend that will continue as aging baby boomers approach retirement.

More than 47 million people receive Social Security retirement benefits, nearly a 20 percent increase from a decade ago. About 11 million people receive Social Security disability benefits, a 38 percent increase from a decade ago.

The Social Security Administration has been encouraging people to access services online. The agency has upgraded its website in recent years, including secure connections to access confidential information. People can apply for benefits without ever visiting Social Security offices.

In 2013, nearly half of all retirement applications were filed online, the report said.

But the committee report notes that many older Americans lack access to the Internet or might not be comfortable using it to apply for benefits.

Last year, more than 43 million people visited Social Security field offices. About 43 percent of those seeking an appointment had to wait more than three weeks, up from just 10 percent the year before, the report said.

About 10 percent of visitors to Social Security offices are applying for benefits, Berryhill said. The largest group, about 30 percent, are seeking new or replacement Social Security cards.

Berryhill said Social Security officials do annual reviews to determine whether offices should be expanded, reduced or closed.

“Once we make the decision to consolidate an office, we discuss the changes with stakeholders,” Berryhill said. “We hold town hall meetings or other forums that allow the public to voice their concerns. We contact key community leaders.”

Like many federal agencies, Social Security has faced budget cuts in recent years. After two years of shrinking budgets, the agency got a 6 percent increase this year, to $11.8 billion.

Social Security has cut its workforce by 11,000 employees over the past three years, Berryhill said.

She said the agency saves an average of $4 million over the course of a decade for every field office it closes.

“I can hire a lot of employees with $4 million,” Berryhill said.

You can see how things are changing with the strain Baby Boomers are putting on our already overburdoned system. The time is now to take care of your future and not rely on anyone else! And don’t forget our Summer Cash bonus which can go right into your pocket. Remember me to your family, coworkers and friends and earn your summer referral bonus of $1000 cash.

Have a great week,

Warren

Your Annuity Information Report for January 30, 2013

 

 

 

 

 


Its not too good to be true…

but it’s too good to last!

Now 6.00% !!!

InterestGuaranteed                18% Upfront Bonus

Call Warren directly at
877-476-5051
 

Warren Elkin has had an A+ Rating since 1977! That’s over 36 years without a complaint!

 


 

To make sure you are making the best financial decisions for your own retirement situation,contactus at 877-476-5051 or visit our websitewww.warrenelkin.com  to learn more.

 


 

Earn Money Today

To say thanks for spreading the word, Warren Elkin is launching a new referrral program. If you recomend his services to family and friends, you will receive $500 cash money for each confirmed deal.

 


Read our Book

If you don’t have your own copy, please call us at 877-476-5051 or email us at elkininc@aol.com and we will send a complimentary copy to you or any of your friends and family!

 

Corporate Offices

11901 Santa Monica Blvd., Suite 564

Los Angeles, CA 90025

877-476-5051

 

 

 

Want to know more about protecting and growing your principal? Want to know more about creating a guaranteed income for life? Want to earn additional cash by referring Warren to your family and friends? Call Warren today at 877-476-5051!
I’m excited to announce that we are offering a $500 referall program, where cash money is paid to you directly from us for any referall that results in a confirmed deal. Want to know how you can earn additional money by referring friends and family, just give me a call at 800-475-5051 to find out more.
It’s almost Superbowl time and the hopes and dreams of Seattle and Denver are on the table.  In the spirit of that hope, I invite you to read this article that I found particularly of interest with respect to investments.
Buy and Hold or Buy and Hope?
As a result of Wall Street propaganda and doublespeak, the investing public is at a huge disadvantage when navigating the markets. From sea to shining sea, broker dealers tout the  mantra  and  sing the praises of Modern Portfolio Theory (MPT), also known as the Buy & Hold strategy. The name is misleading; MPT is anything but modern and was developed in the 1950s. The main ideas of MPT are that buy-and-hold strategies are best, and that there is safety through diversification. That sounds logical, but Buy & Hold often doesn’t work out as planned. Furthermore, outside of bonds, there is an extremely high degree of correlation across equity asset classes—making diversification an illusion.
Let’s take a closer look at what MPT really is: a passive investment approach. In no other life endeavors is passivity successful: not in raising children, career advancement, athletics, or any other field.  Why should a passive approach work in the most highly competitive endeavor in the world?
The most dangerous part of buying into a passive strategy like MPT is the frequency of recent market disasters. It is only now that the market is back barely at or above 2007 levels after falling off to 6500 in February of 2008.  Also, remember the fun in 2000, 2001 and 2002?  Do you remember the Asian Contagion and The Russian Flu in the summer of ’98?  What about the recession of ‘94? The recovery rate from recent market disasters has been abysmal. As of December of 2011, a buy-and-hold investor in the S&P 500 would still not be able to break even. The graph below shows the Value Added Monthly Index, tracking the value of $1,000 invested in the S&P 500 in January of 2007. While it is not possible to invest directly in the S&P 500, one can invest in a mutual fund that tracks the S&P 500. This would then include fees, possible commissions, and 12b-1s, creating a drag on the performance and likely making it so the mutual fund underperforms the benchmark.
An investor who bought in 2000 and listened to his broker‘s advice to hold on because “the market always comes back” would have seen massive fluctuation and periods of enormous loss. The question is this: did he “Hold,” or did he “Fold” at any point in time?  If he held on, there would have been a lot of pain and anguish, often leading to a buy high, sell low effect.
Dalbar reports that from 1991 through 2010 the S&P 500 20-year average was 9.14%, while the average mutual fund investor earned 3.83%.  In spite of the popularity of the Buy & Hold strategy, it does not take human emotion into account; most investors buy high and sell low.  When the market is down or declining, people become afraid and freeze or sell. The opposite happens when the market is rising; people watch it rise, become more comfortable, and, believing that it is logical and safe, they actually buy triggered by an emotional decision based on Greed and Fear. As seen in the charts below of the DJIA and the Inflow/Outflow into US Equity Funds chart 1995-2011, the majority of capital inflows are near the tops of the DJIA and the majority of the outflows are near the lows. Buy & Hold is a bad idea, but buying high and selling low is worse.
Now that we know why Buy & Hold doesn’t work, let’s take a look at the other reputed benefit of MPT: diversification. Most equity portfolios are invested and diversified among the major indexes such as the NASDAQ, Russell 2000, S&P 500 and the MSCI EAFA (one of the major indexes for international holdings).  The chart above shows the value of $1,000 invested in these indexes from January 2007 through December 2011.  As with the S&P 500, we are not actually able to invest in these indexes; however, as many people do invest in no-load equity index mutual funds, this will give you an idea of what is going on. What we see is that there is an extremely high degree of correlation between these indexes, meaning that they really do move up and down together.
Using the S&P as the benchmark to judge correlation, we can see that these other major indexes move in similar fashion.  A .92 signifies a 92% correlation, meaning that they move together.  A 1 correlation means they move up and down in tandem.
Correlation Table – Benchmark: S&P 500 TR 
(Jan-2007 to Dec-2011)
Correlation
Nasdaq 100 Index 0.92
Russell 2000 Index 0.95
MSCI EAFE – Gross 0.92
S&P 500 TR 1
Let’s take this a step further and look at how some well-known mutual funds are correlated to the S&P 500.
The chart above shows the growth of $1,000 invested in January 2007 through December 2011 among some of the most widely held funds from the “Large Funds” category on MSN Money .  There is a very high degree of correlation to the S&P 500.  This is actually exactly what they are supposed to do. The mutual fund manager of a large cap fund is supposed to buy large cap stocks and is generally 95 % to 98% fully invested in large cap stocks.  The fund manager does not have the option to move the invested dollars of the fund to cash because his mandate is to own large cap stocks.  That means that even if the fund manager knows in his heart that the market is going to plummet, he must stay almost fully invested in large cap stocks. This is why large cap funds go up and down with the market.
Now that we have looked at the most widely held Large Cap funds, let’s take a look at the best funds.  Using the funds listed in the popular annual CNNMoney article titled”Money70: The Best Mutual Funds You Can Buy,” we compared the best Large-Cap funds to the S&P 500, as illustrated in the graph below.
Once again it looks as though there is a very high degree of correlation.  Let’s look at the actual numbers.
Correlation Table – Benchmark: S&P 500 TR
(Dec-2007 to Dec-2011)
Correlation
Vanguard Total Stock Mkt Idx Inv 1.00
Fidelity Contrafund 0.96
American Funds Capital Inc Bldr A 0.94
Dodge & Cox International Stock 0.94
American Funds American Mutual A 0.99
Jensen J 0.96
T. Rowe Price Blue Chip Growth 0.96
Selected American Shares S 0.98
S&P 500 TR 1
The Vanguard Total Stock Mkt Idx Inv has a correlation of 1, meaning it is moving in tandem with the S&P 500.  That manager is doing exactly what his mandate tells him.  He is mirroring the S&P 500, which he does by buying S&P 500 stocks.  If this does not seem difficult, it’s because it is not.  There is actually no investment expertise going on in that fund.  The correlations of .94 to .99 are a result of fees and of not owning an exact mirrored allocation of the actual S&P 500–but they are pretty darn close.
The point is that in the traditional investment world, there is no safety through diversification because the assets recommended to clients on the equity side have an extremely high degree of correlation. They move up and down together, and they have an even higher degree of correlation in times of crisis–when true diversification is most important.
If you are sitting across from a stock broker that tells you about the advantages of MPT, safety through diversification or Buy & Hold, smile politely, grab your hat and run away as fast as possible.  MPT has been disproven because there is no safety in diversification of highly correlated assets.  Then remember that Buy & Hold plus human emotion turns into Buy & Hope–which turns into Buy High and Sell Low.  Your first step toward safety is to run away fast and find an advisor that shares this type of information.
I hope you enjoyed this weeks newsletter and don’t forget to recommend me to your family and friends and earn a $500 cash money referral fee for every confirmed deal.
Having enough money to last through your retirmement for you and your spouse doesn’t have to be a frightening propostion. With careful planning, education and understanding of the options available to you, both of you can look forward to a wonderful time in your life. To find out how you can earn 6% guaranteed with an 18% upfront signing bonus, contact me directly at 1-877-476-5051. Don’t forget to share this with your family and friends.

I hope that you find this email interesting, insightful and informative. If you have any questions, concerns or are looking for a solid, no risk investment strategy, then please call me directly at 877-476-5051 or email me at elkininc@aol.com.

When you think of safe and secure investments, I want you to think of me and please, don’t keep me a secret from your friends and family. If you are looking for 6.00% guaranteed interest rate with an 18% upfront bonus, please call me to learn more.

Sincerely,

Warren Elkin

© Copyright 2013 Norhill Wealth Strategies CA #0633742

 

Your Annuity Information Report for January 21, 2013

 

 
Do You Know the Right Questions to Ask When Buying an Annuity?                                                                           

Click here to get your FreeWhite Pages now!

 


Its not too good to be true…

but it’s too good to last!

Now 6.00% !!!

 

InterestGuaranteed                18% Upfront Bonus

 
Call Warren directly at
877-476-5051
 

Warren Elkin has had an A+ Rating since 1977! That’s over 36 years without a complaint!


 

Recommended Websites

Senior Retirement Network

Safe Retirement First

 


 

Watch our Video

See our complimentary movie about building wealth to last through your retirement, preserve your principal investment for your heirs and grow your money.  Click here to watch.

 


Read our Book

If you don’t have your own copy, please call us at 877-476-5051 or email us at elkininc@aol.com and we will send a complimentary copy to you or any of your friends and family!

Corporate Offices

11901 Santa Monica Blvd., Suite 564

Los Angeles, CA 90025

877-476-5051

 

 

Now, You know from my emails that education and empowerment is always my motivation, but the current economy worries me and I need to tell you about it. I want you to be able to make more informed decisions now and better protect yourself before it happens.

Take a look at the graph below. What it’s telling us is that the market (ex. the S&P 500® index) is directly corresponding to our country’s national debt.

The Fed is pouring money into the stock market to encourage investors to ‘stay the course’ in regards to their assets even though the United States economy is still in trouble.

How long do you think they will keep this up? I believe this is a bubble – I’m calling it the “Fed Bubble” – and I believe it’s going to burst soon.

When it does, there may be a lot of turmoil in the markets. For a time anyway. And that is time a lot of people don’t have to wait, not to mention the time needed to recover from the loss of invested assets.

My advice is to first make sure your living expenses are protected. Make sure the principal you need for the rest of your life, and that which you want to leave for your heirs, is protected.*

And like with the bond bubble, the real estate bubble and the dot com bubble before this, with purposefully-designed annuity strategies, your income account value can grow during a time money will grow nowhere else.

Now I saw this article in Bloomberg this week and I thought I would pass it on.

Baby Boomers: Poorer in Old Age Than Their Parents

Eighty-seven-year-old Lew Manchester has just returned from a three-week trip touring Buddhist temples in Laos and cruising the Mekong Delta in Vietnam. His 61-year-old daughter Lee lives year-round in the basement of a friend’s cottage on Cape Cod. Both worked all their lives, both saved what they could. Yet Lew, a son of the Great Depression and former company man, and Lee, a baby boomer who has pursued careers as an entrepreneur and a midlevel manager, ended up in different economic strata. “Timing is everything,” says Lee, who now works at an inn, “and my dad’s timing with jobs, real estate, and retirement benefits was better.”

While plenty of baby boomers, born from 1946 to 1964, have become affluent, and many elderly across the U.S. face financial hardship, the wealth disparity of this father and daughter is emblematic of a broad shift occurring around the country. Many graying boomers are less secure financially and have a lower standard of living than their aged parents. The median net worth for U.S. households headed by people aged 55 to 64 was almost 8 percent lower, at $143,964, than those 75 and older in 2011, according to U.S. Census Bureau data. Boomers lost more than other groups in the stock market and housing bust of 2008, and in the aftermath many also lost their jobs at a critical point in their productive years.

That’s left many ill-prepared to provide for themselves as they approach old age, even as they are likely to live longer than their parents. For the first time in generations, the next wave of retirees will probably be worse off than the current elderly. More than half of those aged 50 to 64 think their standard of living in retirement will be somewhat or much worse than their parents’, according to a 2011 survey by the AARP Public Policy Institute. “Baby boomers are the first generation without the safety net of pensions and other benefits their parents have,” says Alicia Munnell, director of the Center for Retirement Research at Boston College. “They’re facing a much more challenging old age.”

Lee Manchester knows her later life will be more austere than her father’s. She made a choice early on to become an entrepreneur rather than work for a large company with benefits, as he did. She started a commercial construction company in 1986 with $150,000 from a divorce settlement. She hired a dozen employees and succeeded in landing contracts supplying steel parts for buildings until the construction industry slumped in 1989. Bouncing back, she became a sales manager in the airport parking business. Still, she didn’t start saving for retirement until her late 40s, when her employer established a 401(k) account. Today, her retirement savings of $120,000 is right at the median 401(k) balance for households headed by baby boomers, according to 2011 data from the Center for Retirement Research. That will provide just $4,800 a year to boomers when they turn 65, assuming they take out 4 percent annually, the top amount many financial planners say should be withdrawn to assure retirees don’t run out of money during their lifetimes.

Even if boomers like Lee saved more, they would have been hurt by a shift to 401(k) accounts from pensions in the 1980s. Thirty-seven percent of the elderly in the U.S. collect pensions, which provide some guaranteed income until they die. Fewer than 10 percent of boomers do, and that number is quickly shrinking.

Lee worked in the airport parking business until 2009 when she was laid off from Parking Co. of America a few months before the company filed for bankruptcy. Although she found a new job in 2010 paying $52,000 a year as manager of the customer service department at Holo-Krome, a manufacturer of metal fasteners, it lasted only two years. She was laid off just as her second marriage ended in 2012.

No longer able to afford her four-bedroom house in West Hartford, Conn., which she purchased for $225,000 at the height of the housing bubble, Lee rents it out for $1,600 a month to cover her mortgage and taxes and hopes to hold it until prices rise so she can recoup her investment. She now lives in the basement of her friend Brita Tate’s house in Wellfleet, Mass., paying $400 a month in rent. She found a job managing the spa at the Crowne Pointe Historic Inn in nearby Provincetown, where she earns $13.50 an hour working as a combination hostess, receptionist, fixer of gym equipment, and laundress.

Lew Manchester hasn’t worried about money since retiring 23 years ago at 64. Every month, in addition to his $1,750 Social Security payment, he gets two pension checks: $1,000 from Marsh & McLennan, the last insurance company he worked for, and $783 from the military for serving in the Army Reserve for 20 years. He also has more than $800,000 in savings, close to $400,000 of which he cleared from the sale of his Hartford, Conn., home in 2005, when he and his then-ailing wife moved to an assisted-living residence in Northern California. During the next five years, while caring for his wife, who died in 2010, he was able to save more. A long-term care policy he’d purchased years earlier for $500 a month over 10 years paid out more than $275,000, covering most of their living expenses, and it’s still available for him to use if he needs it.

Lee has borrowed money from her father in the past and repaid it. She avoids dwelling on her financial difficulties during her weekly calls to him. “I know he’ll help me if I fall off the ledge,” she says, “but he taught me to be self-sufficient.”

Having enough money to last through your retirmement for you and your spouse doesn’t have to be a frightening propostion. With careful planning, education and understanding of the options available to you, both of you can look forward to a wonderful time in your life. To find out how you can earn 6% guaranteed with an 18% upfront signing bonus, contact me directly at 1-877-476-5051. Don’t forget to share this with your family and friends.

To make sure you are making the best financial decisions for your own retirement situation,contactus at 877-476-5051 or visit our websitewww.warrenelkin.com  to learn more.

Want to know more about protecting and growing your principal? Want to know more about creating a guaranteed income for life? Call Warren today at 877-476-5051!

I hope that you find this email interesting, insightful and informative. If you have any questions, concerns or are looking for a solid, no risk investment strategy, then please call me directly at 877-476-5051 or email me at elkininc@aol.com.

When you think of safe and secure investments, I want you to think of me and please, don’t keep me a secret from your friends and family. If you are looking for 6.00% guaranteed interest rate with an 18% upfront bonus, please call me to learn more.

Sincerely,

Warren Elkin

© Copyright 2013 Norhill Wealth Strategies CA #0633742

Your Annuity Information Report forJanuary 10, 2013

  

 

 
Do You Know the Right Questions to Ask When Buying an Annuity?Click here to get your FreeWhite Pages now!

 


Its not too good to be true…

but it’s too good to last!

Now 6.00% !!!

 

InterestGuaranteed                18% Upfront Bonus

 

 
Call Warren directly at
877-476-5051
 

Warren Elkin has had an A+ Rating since 1977! That’s over 36 years without a complaint!


 

Recommended Websites

Senior Retirement Network

Safe Retirement First

 


 

Watch our Video

See our complimentary movie about building wealth to last through your retirement, preserve your principal investment for your heirs and grow your money.  Click here to watch.

 


Read our Book

If you don’t have your own copy, please call us at 877-476-5051 or email us at elkininc@aol.com and we will send a complimentary copy to you or any of your friends and family!

Corporate Offices

11901 Santa Monica Blvd., Suite 564

Los Angeles, CA 90025

877-476-5051

I Bet Your Mutual Fund Manager Won’t Tell You This. 

No doubt you have read the statistics over the years that perhaps only 30% of investment managers beat the market.  Even that statistic is misleading because of all the fees and taxes an investor should consider.
Mutual fund companies almost never warn you about your tax costs and also seek to hide performance lag.
Here is one example.  OppenheimerFunds Main Street Fund has about $6 billion in assets and the overall strategy we would estimate runs perhaps $20 billion under portfolio manager Manny Govil, who took over the fund in May 2009 after building a successful track record at other firms.
When you read their online materials the company will show returns that, on the surface, seem pretty good.  Comparing the fund to the S&P 500 would suggest Main Street fund delivered value, outperforming in 2009, 2010, 2012 and the first nine months of 2013.
If you are a taxable investor pay attention to the fact that 20% of your profits will go to the government.  This is also true if you select your own investments but unlike a fund you get to determine the timing of the tax liability.
Then you have the “marketing expenses.”   Oppenheimer will charge you 5.75% so they can pay the broker who sells you the fund on the front through its Class A shares.  Many people instead opt for a different share class that foregoes the upfront charge but has a “back end” load if you liquidate in the first few years.
Well, if you just hold it no problem, right?  Wrong!  If you opt for the no load route Oppenheimer will charge you 0.99% for “12b-1” fees instead of 0.24% as on the load fund.  Does this extra charge help you?  No.  They use it to pay their sales people to gather more assets on the theory that more assets will spread the costs wider.  Yet somehow the expense ratio on these funds will never go down.
In the end, even with an above average money manager like Manny Govil running this fund the average investor will lose about (3%) annually when all the costs are factored in.
Please call me to hear more about how you can earn 6% interest guaranteed with an 18% upfront bonus. Don’t forget to tell your family and friends.

To make sure you are making the best financial decisions for your own retirement situation,contactus at 877-476-5051 or visit our websitewww.warrenelkin.com  to learn more.

Want to know more about protecting and growing your principal? Want to know more about creating a guaranteed income for life? Call Warren today at 877-476-5051!
I hope that you find this email interesting, insightful and informative. If you have any questions, concerns or are looking for a solid, no risk investment strategy, then please call me directly at 877-476-5051 or email me at elkininc@aol.com.When you think of safe and secure investments, I want you to think of me and please, don’t keep me a secret from your friends and family. If you are looking for 6.75% guaranteed interest rate with an 18% upfront bonus, please call me to learn more.

Sincerely,

Warren Elkin

© Copyright 2013 Norhill Wealth Strategies CA #0633742

 

Is There Any Such Thing As a Zero Risk Investment? By Warren Elkin, Norhill Wealth Strategies

Transfer-Your-Roth-IRABy Warren Elkin

Wouldn’t it be wonderful if we lived in a world where we could earn a high rate of return on an investment without accepting any risk? While we readily accept that most of us won’t be buying into that type of scenario, as we head closer to retirement age, we would like to have some of our retirement funds in zero risk investments.

What Constitutes a Zero-risk Investment?

A riskless investment is one in which the return on the investment is a known figure and the issuer of the investment is a highly trustworthy agency. Generally speaking, securities offered by the United States government such as Treasury Securities are considered riskless. Although the U.S. government could potentially default on payment, most experts agree that the country would be in dire straits should such a default ever actually occur.

Savings accounts and certificates of deposits, or CDs, at insured financial institutions are also types of zero-risk investments that people have found useful, especially when higher interest rates were available.

Why not choose solely no-risk investments?

A major drawback of zero-risk or low-risk investments is that their yield is extremely low in the present financial environment. People want their capital to earn money, preferably at rates that at least keep up with current inflation rates each year.

According to the U.S. Inflation Calculator, inflation rates in the United States from 2007 to 2013 ranged from a high of over 4% to a low of about .01%. Inflation rates will continue to fluctuate, so those investors who hold onto cash positions actually lose money each year as their purchasing power declines according to the rate of inflation.

While there is no way any financial adviser can guarantee you a high rate of return in exchange for little or no risk, we can advise you in making sound investment decisions where you trade risk for reward as best fits your position and financial requirements. Contact us or visit our website to learn more.

Make sure you have all the facts necessary to make the right decision with your financial future by calling us today! We can help you with information regarding Annuity, Annuities, Fixed Annuity, Fixed Annuities, Variable Annuity, Variable Annuities, Immediate Annuity, Immediate Annuities, Income Annuity, Income Annuities, Deferred Annuity, Deferred Annuities, Index Annuity, Index Annuities, 401k Rollover, IRA Rollover, Retirement Income Planning, Immediate Fixed Annuity, Immediate Fixed Annuities, Annuities Calculator, Deferred Variable Annuity, Immediate variable Annuity, Immediate Income Annuity, Immediate Income Annuities, Deferred Variable Annuities, Best Fixed Annuities,
Best Fixed Annuity, Fixed Deferred Annuities, Fixed Index Annuities, 401k, Rollovers, IRA Rollovers, Advanced Retirement Income Solutions, Retirement, Income Planners, Retirement Income Solutions, Zero Risk Investments.

Speak with us now at 877-476-5051, email Warren at warren@warrenelkin.com, or go to www.warrenelkin.com to learn more about Warren Elkin of Norhill Financial and his unique process to make sure your financial decisions are made in your best interest.

Best Retirement Income Practices by Warren Elkin, Lifetime Retirement Income Planning

Lifetime Retirement Income Planning with Warren Elkin

Lifetime Retirement Income Planning with Warren Elkin

Retirement Income Tax Tips. For many of our working years we concentrate on saving for retirement. When the time comes to actually retire, our concerns shift to how best to allocate the funds we worked so hard to save. Your withdrawal plan should be formulated around many factors, including the taxes you’ll need to pay. It’s impossible to get around paying taxes on retirement accounts that were funded with tax-deferred money. However, you can implement an advantageous withdrawal strategy that can provide some tax relief. Consider four retirement income tax tips.

  1. Start with tax-deferred accounts. You’ll pay taxes on 401 (k) and IRA account withdrawals since they were funded with money that is usually removed from your paycheck before income taxes are taken out. However, remember that you can count losses to these accounts, which can help offset the taxes on the withdrawals. Additionally, some of the investment growth will qualify for a lower long-term capital gains rate.
  2. Let tax-free accounts sit as long as possible. We call them tax-free, but in reality you paid taxes on the money before you deposited it. A Roth 401(k) is the most common type of account with this structure. Saving these accounts for last gives the balance more time to grow without the tax burden, giving your overall retirement balance some added cushion.
  3. Remember the government deadlines. Being overly conservative with your withdrawals may bite you in the long run. The federal government requires you to withdraw a minimum amount from 401(k)s and IRAs by the age of 70 1/2. A 50 percent tax awaits those who do not comply.
  4. Be ready to make changes. No two retirement strategies are the same, and the same person’s strategy may change over time. Many factors come into play, including legislation. Tax laws and rules governing retirement accounts change rapidly. Stay up-to-date and make needed adjustments.

Determining how to structure your retirement withdrawals is challenging. The amount of tax to be paid is just one variable to consider. Contact us for help developing a retirement strategy that fits your needs.

Make sure you have all the facts necessary to make the right decision with your financial future by calling us today! We can help you with information regarding Annuity, Annuities, Fixed Annuity, Fixed Annuities, Variable Annuity,Variable Annuities, Immediate Annuity, Immediate Annuities, Income Annuity,Income Annuities, Deferred Annuity, Deferred Annuities, Index Annuity, Index Annuities, 401k Rollover, IRA Rollover, Retirement Income Planning, Immediate Fixed Annuity, Immediate Fixed Annuities, Annuities Calculator, Deferred Variable Annuity, Immediate variable Annuity, Immediate Income Annuity, Immediate Income Annuities, Deferred Variable Annuities, Best Fixed Annuities,
Best Fixed Annuity, Fixed Deferred Annuities, Fixed Index Annuities, 401k, Rollovers, IRA Rollovers, Advanced Retirement Income Solutions, Retirement,Income Planners, Retirement Income Solutions, Zero Risk Investments.

Speak with us now at 877-476-5051, email Warren at warren@warrenelkin.com, or go to www.LifeTimeRetirmentIncome.com to learn more about Warren Elkin of Norhill Financial and his unique process to make sure your financial decisions are made in your best interest.

Social Security, Medicare and Cobra by Warren Elkin, Lifetime Retirement Income Planning

Lifetime Retirement Income Planning with Warren Elkin

Lifetime Retirement Income Planning with Warren Elkin

Decide when to claim Social Security. Social Security statements became available online for the first time in 2012, and more than 1 million people have already downloaded them. Check your statement to make sure your earnings were accurately posted to your Social Security record, and make note of how much you will receive from Social Security at various dates. Most baby boomers can claim the full amount of Social Security they have earned beginning at age 66. Boomers who sign up before age 66 will get a reduced payout. Retirees can further boost their monthly payments by delaying claiming up until age 70. You don’t have to sign up for Social Security in the year you officially retire.

Sign up for Medicare on time. You can first sign up for Medicare beginning three months before the month you turn 65. This initial enrollment period lasts until three months after age 65. If you don’t sign up during this seven-month window around your 65th birthday, your monthly premiums will increase by 10 percent for each 12-month period you were eligible for, but did not enroll in, Medicare Part B. If you are covered by a group health plan based on your or your spouse’s current employment after age 65, you need to sign up within eight months of leaving the job or health plan to avoid the penalty. For people who retire before age 65, you need a plan to maintain health coverage until you become eligible for Medicare, such as through COBRA continuation coverage or a spouse’s health plan.

Make sure you are vested in your retirement benefits. While you always get to keep the money you contribute to your workplace retirement account, you don’t necessarily get to keep your employer’s contributions until you are vested in the retirement plan. Some retirement accounts don’t allow you to keep any employer contributions until you have been with the company for a specific number of years, while others allow you to keep a proportion of your benefit based on your years of service. Find out the date upon which you can keep all of your benefits, especially if you have only been with your current employer for a few years. In some cases, it can be worth it to stick around for a few extra weeks or months to get a bigger retirement payout.

Protect your savings. Shift your primary investment strategy from growth to protecting what you have.

Spend down your assets. Retirees need a plan for how they will convert their retirement savings into a stream of income that will pay their monthly bills. Factor in the income tax that will be due on traditional 401Ks and IRA withdrawals.

Don’t forget to take the required minimum distributions from your traditional 401K and IRA accounts. There is a stiff 50% penalty for failure to take distributions by 70 1/2.

Make sure you have all the facts necessary to make the right decision with your financial future by calling us today! We can help you with information regarding Annuity, Annuities, Fixed Annuity, Fixed Annuities, Variable Annuity,Variable Annuities, Immediate Annuity, Immediate Annuities, Income Annuity,Income Annuities, Deferred Annuity, Deferred Annuities, Index Annuity, Index Annuities, 401k Rollover, IRA Rollover, Retirement Income Planning, Immediate Fixed Annuity, Immediate Fixed Annuities, Annuities Calculator, Deferred Variable Annuity, Immediate variable Annuity, Immediate Income Annuity, Immediate Income Annuities, Deferred Variable Annuities, Best Fixed Annuities,
Best Fixed Annuity, Fixed Deferred Annuities, Fixed Index Annuities, 401k, Rollovers, IRA Rollovers, Advanced Retirement Income Solutions, Retirement,Income Planners, Retirement Income Solutions, Zero Risk Investments.

Speak with us now at 877-476-5051, email Warren at warren@warrenelkin.com, or go to www.LifeTimeRetirmentIncome.com to learn more about Warren Elkin of Norhill Financial and his unique process to make sure your financial decisions are made in your best interest.