Posted on August 12, 2010 @ 6:02 pm - Written by BawldGuy
When I initially meet with new clients, one of the first things we go over is what their end game is when they think of retiring. I usually get the ‘Captain Obvious’ stare for a second or two. Of course, income is what allows them to even contemplate retiring, but after the last few years, most have come to covet stability of income, along with the safety of their investment capital. It’s one thing to arrive at retirement with a boatload of equity, it’s quite another to fall asleep each night knowing it’s foundation is secure, as in deeply sunk, steel reenforced, heavy duty concrete secure.
What many of the studies put out by Dalbar Inc have shown is that the typical investor, whether lookin’ for long term capital growth or fixed income, just hasn’t faired well at all — if they’ve given their money to Wall Street. I don’t mean lately. I mean the last 20 years — pretty much a generation. Want numbers do ya? Read the rest of this entry »
Posted on May 12, 2010 @ 8:32 am - Written by BawldGuy
Written By — David Shafer
Life insurance is a flexible tool for estate planning. I want to add a demonstration on how it can be used by someone just outside of what are normal parameters would be, age wise, for income from an EIUL. Let’s take a 63-year-old man who has significant real estate holdings and also significant depreciation available for offsetting taxes. Normally we would say that this person is a little above our age cut-off for using EIULs for income.
This person has planned well and will have enough income from his real estate holdings and other sources to live an abundant life. But he does have a couple of concerns. He has been the manager of his real estate holdings, making the major strategic decisions. What happens when he reaches an age where he either can’t or doesn’t want to continue to be actively involved? Or what happens if he dies and his wife is suddenly confronted with the real estate portfolio? Read the rest of this entry »
Posted on March 15, 2010 @ 8:37 am - Written by BawldGuy
Written By — David Shafer
You are 32 years old, a man in good health, and newly married. You have a good job, make good, not great, money, and want to start out in life on solid financial footing. You are responsible financially and, along with your wife, have saved 6 months worth of expenses. What is the next step? You have been putting money into an 401K, but recently have started to question that decision as you have a long way to go to you can access this money without penalties and you see the big ups and downs the market has provided.
You see your parents worrying about the big losses in their retirement funds over the last decade and you want to consider something different!
Perhaps an EIUL????? Read the rest of this entry »
Posted on March 3, 2010 @ 8:22 am - Written by BawldGuy
Written by — David Shafer
Critics are constantly harping on the reasons not to invest in this or that. Some are calling for the end of American capitalism. So I thought I would give you the reasons why you should purchase an EIUL contract in concise form.
Taxes For most of us, taxes represent our biggest expense. Sales tax, income tax, property tax, gas tax, state tax; the list goes on and on. EIULs are designed to help you avoid some of the biggest taxes you have; state and federal income taxes. I don’t have a crystal ball so I can’t tell you what your tax rate will be when you retire, but I can bet that income taxes will be among the largest tax you pay. With the government running trillion dollar deficits as long as the eye can see, I wouldn’t wait for your federal income tax to go down, but that is just me. Read the rest of this entry »
Posted on March 1, 2010 @ 8:23 am - Written by BawldGuy
BawldGuy here — I’m so pleased to have Tom Anderson as a contributor here. He’ll be the resident ’slam dunk’ expert on IRA’s and related qualified plans, including the nuts ‘n bolts needed for any implementation you may need. We’re now setting up lines of communication with Pensco Trust which will smooth your way to the right person when you need stellar expert advice/assistance in the conversion from one type plan to another, or the plan’s purchase of real estate investment property.
Tom Anderson and Pensco are the real deal. I think you’ll be very pleased. Today starts with a sorta primer, the first part of a three part series on Roth IRAs and converting current plans to them.
Tom is just the latest example of the high level of expertise, experience, and knowledge it takes to be a contributor here. When it comes to self-directed plans — he’s your guy. Read the rest of this entry »
Posted on February 9, 2010 @ 11:30 am - Written by BawldGuy
Written by David Shafer
It always amazes me that folks can hold on to foolish ideas in their heads despite ample logical evidence of the foolishness of those ideas. For example, I constantly see referenced a couple of articles written by some Wall Street Lackeys about the superiority of stock investing over real estate investing. When you actually go to look at these articles, they are so poorly argued that it is amazing that the magazines that printed them would consider them fit to print in a financial oriented magazine. But, they get continually recycled.
For the record, historic research into internal rate of returns for investment real estate versus stocks demonstrate a huge advantage for real estate. This is not to say that fortunes can’t be made investing in stocks [Buffett, Lynch, etc.], only that arguing it is always better to invest in stocks over real estate is just dumb. I mean when you look at the wealth of super-wealthy people, on average, there is 3 times as much in investment real estate as stocks and bonds. Read the rest of this entry »
Posted on January 11, 2010 @ 12:46 pm - Written by BawldGuy
Readers: As I’ve written recently, this blog will be expanding to a multi-author format, while remained focused like a laser beam on real estate investment for retirement through a Purposeful Plan. David Shafer is a welcome addition to say the least. I’ve written about EIULs often on these pages — David has been my go-to expert on the subject. Though he’s written here a few times as a guest author, he now part of the BawldGuy Talking family. The following is his initial post. Welcome, David.
Written By David Shaffer
Hello all. When Jeff asked me to be a contributor to his blog, I jumped at the chance. As a regular reader of Bawldguy and someone that has gotten to know Jeff on a personal level, I have received much wisdom on a whole host of topics. The offer to give back to his readers some of the wisdom I have on using life insurance to fund retirement is something I look forward to doing.
This first post will give the reader a general idea about the insurance product, Equity Indexed Universal Life insurance, which I believe best carries out the strategies we will talk about going forward. Read the rest of this entry »
Posted on December 14, 2009 @ 4:18 pm - Written by BawldGuy
BawldGuy Axiom: The farmer who plows and plants in spring is never shocked to be harvesting bountiful crops in autumn. (How’s that for openin’ up a big ol’ can of Duh!?)
What comes before constructing a Purposeful Plan?
What comes before buying low and selling high?
What must come before anything you and I choose to do or accomplish?
What precedes a college diploma?
A decision must be made. Read the rest of this entry »