THE WEALTH EFFECT: BY L. Carlos Lara
The height of the stock market and even the strength of the dollar itself ultimately rest on public confidence in our financial system. And right now there’s not much to be confident about.
The biggest fear that people over the age of 60 have is running out of money in retirement. And for many Americans, this is a very real risk, not an irrational phobia.
Have you taken a “30,000-foot view” of your finances lately? Is it positioned for the growth, strength, stability and cash flow you desire? To help you answer that, let’s examine asset allocation and diversification.
Financial education, or how money works, is not taught in our schools and the knowledge that we have is transmitted from our grandparents and parents.
You can become financially independent if you have sufficient personal wealth to live indefinitely without having to work actively for basic necessities.
A couple of years ago, a long-time client called and said he wanted to talk to us about his retirement. The problem was that he was sixty-four years old and had nothing saved for his retirement. Since we had known him for many years, we knew that during the prior ten years he had ridden … Read more
Anyone who has any type of banking policy has probably come across the term Modified Endowment Contract, or MEC. You may have noticed a portion of your whole life policy illustration or contract stipulating whether or not it is a MEC. You may have even seen numbers indicating the additional amount of Paid-Up Additions that … Read more
If you make contributions to any type of qualified plans like a 401(k), a 403(b), or an IRA you should know the following facts: These programs are not tax-free but tax-deferred, which means that although you enjoy the immediate gratification of not paying taxes now, you will be most likely paying higher taxes on a … Read more
The money stored in your properly-structured whole life insurance contract is guaranteed to grow every year by an increasing amount; in other words, the increase in cash value between years 3 and 4 is larger than the increase between years 2 and 3. So your cash value cannot go down; it is always increasing and … Read more
When you save your money, you have access to all or part of it at any time without penalties, it is not subject to losses, and if saved in the appropriate financial instrument, it grows continuously over time. When you invest your money, you may have to pay penalties and/or taxes to access it at … Read more
