Capital Information Site
with new information on our economic crisis.
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Information At Your Fingertips!
you been scorned, jaded or burned lately by a stock broker or
other investment advisor? If you suddenly find yourself in need
of securing a "new home" for your money -- you've come to the
right place. This information site can serve as a good
starting place in your search.
Hi! I am
M.D. Anderson, a long-term financial advisor originally from
Forest City, Iowa and a resident with my family in Chandler,
Arizona for the past 21 years.
It is assumed
you came here from a client or advisor referral or maybe from
using a search engine. Regardless of how you got here -
I will always be sure to keep the most up to date information on
this site so you will want to mark it as a "favorite" so you can
come back and read the updates from time to time.
And, if after reading the information, please send on a few
E-mails to others you may know who might appreciate finding out
about my services. That might include your lawyer,
accountant, or other financial advisors. Or maybe just
your friends or fellow investors who may also find the
information useful also. I am an honest advisor who has
built a reputation on telling the truth, even when it isn't what
some want to hear.
After 35+ years
of practice, few others are going to have the depth of
knowledge and experience that I have gained over the years,
especially in the multiple financial services that I practice
in. It is free for you to tap into the information on this
site and learn from what I know, with one main goal --
to help you preserve your own capital, or that of the
people you care about most!
loses money, so you are not alone if something bad has happened
to you recently. Some, just lose pocket change but others
can lose their life savings. So, if you are suddenly
finding yourself in a "victim" state, I personally hope your
losses are small.
assessment of how much was lost and when -- is of utmost
importance. If you saw your money go down the drain, and
you know for sure you will never see it again, the last thing
you want to do is nothing. If the loss was at the hands of an
investment salesman, broker, or other financial advisor, who you
now may feel was at fault -- most states impose a short period
of time (statute of limitations) for you to find a legal remedy
to recover your lost funds. It could be as short as one
Now, I am not
talking about making dumb moves with your own money. My
father overused the statement "A fool and his money will
soon part", while I was growing up. If you lost money
and it was your fault... that only leaves a possible tax write
off in your case! I don't have any quick or permanent remedy if
you messed up managing or investing your own money. No one has
a bail-out for you or relief for that situation that I am aware
What I am talking
about is someone else you trusted has made certain moves with or
without your permission in your investment account and it
resulted in lost capital. Sometimes, the loss is from the
failure to act. Either way, if the loss is permanent
after trusting someone who was responsible for proper money
management of your money, I can't help you get the lost money
back. But, I can help you preserve the remaining capital
so it doesn't happen again!
capital is important to all investors. Sometimes, investment
brokers and salespeople forget that all important statement you
made to them at the beginning of your relationship: "I am
interested in a good return on my money. But
I am extremely
interested in the return OF MY MONEY!!!" O.K., you
probably never said that up front. But you should next
You have to be
careful not to get burned when you
someone else to manage your money for you. I have seen many
victims of those "silver tongued devils" (salesman) lie to
people here in Arizona just to sell them something they don't
First, I warned
investors that Charlie Keating's bonds being sold here in
Phoenix in the late 80's were not secured. You guessed it.
Investors were left at the alter big time in that ordeal!
And, not that long ago, I saw more than a few clients or
associated friends of clients go against my advice on the
Baptist foundation investments of the past, here in Arizona.
And of course, investors suddenly became victims again in our
city. Many lost way more than they will ever recover.
Plus, how do you get paid for your time and trouble and extreme
stress that a capital loss forces you to experience?
The truth is,
many lose a chunk of their lives because of the direct and
indirect damage that the stress puts them under. One can
avoid that scenario just by playing it a little more safe on
what they invest in and who they invest with.
loses money. Some have big losses and others have
negligible losses that most likely will amount to no more than a
capital loss tax write off. If your losses ARE big, or at
least seem big to you, and you want to explore the procedures to
possibly get some of it back, don't hesitate to contact me for
some free general legal information that may help you. And, if
you are now exploring ways to avoid losing your hard earned
investment money, (or what's left), I suggest you read this
entire information site.
I have a
guaranteed investment that suites your needs, if you are a
conservative investor that is looking for stock market type
gains without the risk of principal loss. My investments
won't make you 30% a year like you might have experienced in an
open stock market position in a good year. But it also
guarantees that you won't ever lose 30% either!
In fact you won't ever
lose a dime if you hold the contract to maturity!
You may need to
correctly assess your investment profile in light of recent
financial events that have changed the dynamics of investing
greatly the past two years. Maybe it is time to consider a
more conservative position. Preservation of your
investment capital should be your greatest consideration,
especially if you
One thing is for
sure if someone has wronged you and you have lost money -- your
friends will probably only tell you how sorry they are.
They are good at giving you proper sympathy, and maybe some of
that will comfort you right now. But, sympathy alone is not
going to protect you from it happening again. The products
and services I provide to my clients will.
TIP: You Need
to Document What Happened -- RIGHT NOW!
you suffered a capital loss at the hands of an investment broker
or brokerage firm, you probably are searching for solutions and
you may be reviewing your recovery options as well. I am not a
lawyer, but I am a certified legal document preparer here in
Arizona (AZCLDP Certificate #80737 ) and I can give you the
general legal information that you need to get started. This
will help you better understand the options available to you for
recourse. (This service is designed as a starting point, as any
legal advice or strategies would need to come from your own
the tax issues surrounding capital losses, professional
accounting advisory in that area is also available to help you
discover and take the largest deduction possible on this years
tax return. Normally, this includes a simple inventory of all
capital invested assets and matching any other investment gains
with the losses you have incurred so that you can maximize the
tax "write offs". To maximize your tax write off,
you may have to sell some of your favorite stocks or mutual
funds that still have unrealized gain, but you can always buy
them back after taking a tax deduction. (The IRS generally
allows you to take gain or loss deductions and then buy back the
security by just waiting 30 days if you totally liquidate a
position, or 60 days if you do a partial liquidation for tax
some head smart tax planning, you must multiply the
limited $3,000 IRS annual deduction allowed by the IRS by the
number of years you think you will live and see if
that is enough to get it all deducted (your assumed recent
capital loss) in your lifetime!
Remember -- the value of
future deductions must be discounted in value -- so future
capital loss write offs are worth less, each and every year you
have to wait to deduct them!
If you just lost
precious capital, you most likely need professional tax
advisory. It is true that the IRS may increase capital loss
deductions some day, but the market losses suffered by investors
in the 2000-2002 downturn never got any extra help from the
government in deducting their losses. The recent losses in
capital markets, again garnered no change in the small $ 3,000
annual tax write off.
Many now have
unrealized and realized tax loss's in security account
investments that improved recently, but will take years to fully
deduct on their tax returns with the puny $3,000 limit that
still applies for your 2011 tax year (and those that follow).
For many who liquidated after losing tons of money this past
year or two, the tiny tax write off will just be an additional
up with a good tax write off strategy is another important area
that should not be ignored or forgotten! And, one you need
to do before the 2012 tax year ends! The stock market may have
given back a large percentage lately of money lost
previously, but those who didn't stay fully invested during the
"ups and downs" are still reporting some pretty large loss
figures to me as an accountant at tax time.
If you have any
understanding how it all works in this modern world, capital
loss is the opposite of capital gains and many forgot that the
pendulum can swing just as far and hard -- both ways! The
depression era of the 1930's lost close to 85% of values at the
bottom. So, hopefully, the modern stock market system will
find a way to avert from reaching those lows this time, if all
hell breaks loose in a major market drop like we had in 2008.
When governments start buying gold, which is now happening, be
braced for another wild ride down...
You May Need to Find a New Home for Your Remaining Portfolio!
can help you find a new home for your remaining portfolio or
other invested capital assets if you now feel a "flight to
safety" is in order. I have extensive training and
experience in recommending much safer options in fixed
investment annuities from top rated insurance companies that
will protect your principle from any future losses*.
And, many plans
are available with modern indexing into stock and bond index's
so you can still achieve respectable rates of returns in short,
mid, or long investment cycles -- while always protecting
the capital invested against any future losses. Obviously, I
hold the proper licensing as well in the state of Arizona, and
license as well in other states from time to time as needed to
facilitate clients desiring to do business with me in this
important financial area.
contracts require you hold to maturity in order to have full
Thinking you can
just transfer by an ACAT (automated customer account transfer)
to another brokerage firm without again risking your money is
flawed thinking. Just stop and think about it for a few minutes.
Since almost every major brokerage firm has either been caught
and fined for illegal or irregular activity that hurt investors
in the past few years, what makes you think it is the best
place to re-invest what's left of your portfolio?
Do you remember the cat and the
hot stove story?
And, if your brokerage firm
went "broke"....is it smart to stay there now?
If you lost major
capital amounts, I sincerely hope you are searching for a new
home for your remaining funds right now. (If not, why
not?) Just don't forget to include some
"guaranteed" principle options this time around.
Yes, you may need a new home for your remaining money no matter
what you do. And, you may need a new home RIGHT NOW, before you
anticipate or take any legal action against your old firm.
(The rule is leave...then sue them!)
Some would pull
money form equity accounts and just put them in your local bank.
(If you can find one that isn't going broke) Perhaps the
smartest way to preserve your investment capital is to withdraw
those funds (we prefer a direct transfer of course) and put it
in a laddered series of indexed or fixed rate annuities with
different features, benefits, and maturity dates. And if
you have substantial assets, you may possibly want to use
multiple insurance companies as well for annuity contracts.
(Only the highly rated ones of course) We can make these
"safety" investment changes for you, as soon as you decide to
The bank option is
not very practical. Your local bank will pay you between nothing
and 3 % on your deposits between a mix of checking accounts,
savings accounts, money market accounts, and of course
their favorite - the handy dandy bank CD! Any way you fund
their accounts, remember they will instantly lend it all out to
someone else who wants to buy new cars and new homes. You
should know full well they make a lot of money using YOUR money!
They will also report 100% of your earnings as "taxable" each
year to the IRS and to your state of residence tax authority.
(unless you live in a state with no income tax)
But, if your bank has already gone broke, or is about to, is
this the place you want to trust for your investment advice and
assume you will sleep well at night when the government may have
to bail out FDIC insurance yet this year or next? (Some are
reporting it went broke too in 2009 and remains unreliable for
any major losses since the U.S. government spokesman are also
reporting the whole country is "broke"...
Remember, your net
yield in any bank type products will be "after taxes", each and
every year. No more partial sheltering of gains such as
you had with your broker (who we can assume is your former
broker now), when you were able to defer some of your gains
until you sold the stock, bond, or mutual fund in a portfolio.
annuity product option offers something for you that is so
logical, so savvy, so tax smart, that I sincerely doubt you
have fully heard about what they have been offering to
scorned and burned stock market investors for quite a few
years! (And hundreds of thousands of clients that are just
"conservative" in nature) It is a fixed annuity product, not a
variable annuity product such as what your broker might have put
you in before. Yes, a fixed annuity that is indexed to a stock
or bond index, while retaining the standard contract language
that guarantees your principle against any chance of loss. (some
do this from day one of the contract whereas others do this by
the time the contract ends along with a positive interest
guarantee option as well!) Or, you can just lock in a
fixed rate too if you like!
annuities allow sufficient liquidity for income withdrawals
without penalty and all allow tax free growth by automatic IRS
tax law that has been on the books for many decades now.
Most modern annuity contracts also waive any surrender charges
if you have to go to a nursing home, and some even offer an
"unemployment" rider in case you are still in your working
years! Others, give you a checkbook for quick withdrawals.
So, benefits and features abound and are plentiful. That
is why my company represents multiple carriers to be able to fit
YOUR needs perfectly.
Until such time you
feel like taking money out of an annuity and paying your taxes
on it, Uncle Sam does not hamper the growth period you
pre-determine that you want. In other words, you have full
control to determine when and how much money you want to take
back out, much like a bank account. However, unlike your
bank, all money grows tax deferred while it is kept in the
contract! Even if you want to transfer your account balance
to another plan with another company, perhaps to get a better
retirement payout guarantee, IRS laws from 1954, as amended,
allow a section 1035 transfer that is tax free! (Similar
section 1031 provisions apply to investment real estate)
Try that with a bank CD - and they will go "Huh?"
There is one
warning -- when the bank sees you don't like their CD rates, or
you reject their CD's because you fully understand how much you
will lose in unnecessary taxation during the growth cycle --
they will suggest you meet with their investment or insurance
person. Don't fall for this one. The investment
person has great restraints because of the conflict of interest
always present working inside a bank environment. (The bank
directors want your money in THEIR bank products unless they are
going to lose you and your money. Then in that case, they
want you to invest in securities or insurance products, which
they feel is still better than losing YOU completely!)
If you don't
believe me, just look at any bank annual report. They will
concentrate on assets held at the bank. They won't say
much about having X amount of insurance customers. And,
the insurance/investment guy will most likely not make the
annual reports! They rate just above the janitor at most
banks. So, is that the kind of professional you want to
handle complicated and sensitive issues such as what we are
talking about? Can they lend the tax advisory that a
professional such as myself can? The answer is "no".
Even if they have an investment advisor who is also a CPA, they
can not put the institution at risk to give you any
"complimentary" tax advice. The same is true about legal
document help, legal advice, etc. (Remember, AZCLDP's can only
give general legal information to you and prepare legal
documents for you that you request we do) So, the point is
this - you most likely are reading this because someone else has
done something bad to you.
Why complicate matters by
having to talk to a whole handful of advisors when time is of
the essence to do something about your capital losses right now?
We offer our one
firm as the starting point to give beginning guidance for you to
document what happened, we can review the tax issues, and we can
help you find a new investment home or homes for your remaining
funds, and assist you in a legal referral if you decide you want
one. THAT IS A VERY POWERFUL PACKAGE THAT WILL BE HARD TO
Feel free to search online for an alternative to my services,
all under one roof. Few, if any, exist.
One last comment
about bank securities and insurance representatives has to be
mentioned. Securities sales offered by bank investment reps seem
to be staid and boring (these guys are not the sharpest and most
successful ones in their industry or they wouldn't be there) and
seem to be forgotten after the fact for service reasons.
That board of directors that governs them has dictated that they
sell a well known mutual fund to reduce bank liability -- then
they fail to properly service those investment "picks" as time
goes on, for reasons I don't even understand. All I
am saying is that they do a really poor job in servicing what
they sell you and hardly ever try to protect your capital from
A good stock or
mutual fund broker or a fee based money manager will watch over
your account like a hawk as if it was his or her own money and
not ignore your account. They will constantly make
suggestions to you to either make more money or protect your
gains, let alone your original invested capital. A bad
stock or mutual fund broker -- well that is probably why you
are here reading this isn't it?
In summary on the
bank situation, I am speaking from my past experience over two
decades of seeing how people get hurt in securities as their
accountant. Many of the losses my tax clients have
suffered over the years were at the hands of one of these bank
Investment and insurance
contracts sold by bank staffed investment and insurance staff
are often done so by part time people who come in on a certain
day to your local branch. So, they are kind of like
part-time workers in your local branch. And, when you tell
them you want higher rates then the bank is paying, but that you
want your money to be safe - they then seem to concentrate on
selling fixed annuities from less than perfect rated carriers in
many cases. I don't know why this happens, other than the
fact that the lower rated insurance companies tend to pay
the highest commissions! (Those bank board of
directors folks are not stupid!) But, if higher quality
products and carriers exist, why not give them to the client
instead, regardless of commissions?
If you want
professional advisory now, on the best annuity products and
highest rated insurance companies offering annuities, just look
for my company link below, or
CLICK HERE NOW
Do not get trapped in the bank investment or insurance game! If I
can not facilitate your needs in the state you live in, I
promise to make a referral to a qualified consultant who can
Or, if, at first,
you just want pure education on fixed rate and indexed rate tax
CLICK HERE INSTEAD.
Just don't forget to come back when you are done exploring my
other company sponsored websites.
TIP: A Wise
Investor Never Puts Their IRA in an Aggressive Variable
Investment - IF ALL THE CAPITAL IS AT RISK!
need to mention and make a strong point about IRA's, Roth IRA's,
401-k's, 403-b, Keogh Plans and all other "Qualified" retirement
plans you may now have. This is for two important reasons.
First, these type of assets may very well be your first or
single most largest, or second largest asset you now own,
(or maybe it was before your broker helped it disappear!)
along with the equity you have in your home. Secondly, if
this constitutes the area you have lost money in recently by
mismanagement or dishonesty from your broker of record, you have
a very special circumstance that could become a very valid point
with a smart law firm. Read the rest of this article, and
I think you (and your lawyer, or lawyer to be) will agree with
By now, you
probably have already been told by your accountant that any
capital losses in these accounts can not be taken off
as a tax deduction, if you lost money inside a
traditional IRA that had a zero basis. (Zero basis means you did
not make any "non-deductible" contributions into the account)
Worse, qualified plan losses therefore will not allow you to
match gains and losses for maximum tax deductibility either. So,
if you have capital losses in qualified plan accounts, trying to
deduct them most likely will get you audited! And, then you will
get in trouble! You just can't do it on the IRS Form 1040!
The reason is that since all contributions are deducted from
your income during the working years that you participated, you
subsequently can not deduct losses in general that have no IRS
If you have
qualified plans in a variable securities account, the question
comes up WHY?
If your recent
securities loss was in your IRA, I hope I am not the first
person to have to tell you the bad news. But, if I am the
first to tell you that your IRA money lost is not tax
deductible, maybe you should e-mail me to discuss this,
OR JUST CLICK HERE,
because this kind of information is not easy to take.
If your loss is
irrecoverable, (the account is already liquidated or the money
is permanently lost), and not just active but currently down
from bad or negative market performance, the IRS says you are
out of luck for any tax write offs! And, that is big!
Why? Because the loss of the ability to write off a
realized loss in these types of accounts can account for up to
about 1/3 of potential recovery of your lost money from the tax
write off. Both the IRS and the your state of residence
tax authority will give you a simple tax deduction on lost
capital in normal capital investments...but not on zero basis
IRA's! It is worth whatever your marginal tax rates are at
in the tax year of the deduction. If this is your
situation, I guess I might as well say it -- you need a
miracle to get your money back! Absent that, you need
a lawyer to have any chance of any form of lost capital recovery.
That isn't practicing law in telling you that. It is a
proven accounting fact!
So, why take
that chance? A collected judgment on a winning securities
arbitration or full lawsuit claim will help you recover some or
maybe even all of your losses. But absent the chance of
also being granted a punitive award and collecting on it as
well, the approximate 40% in lawyer fees will net you about 60%
of the paid settlement as a rule of thumb. And, the
recovery funds will most likely be fully taxable, since it is an
IRA type account, that remember, has "no basis" for tax
The lesson is this,
IRA funds probably should be invested more conservatively to
reduce this nightmare capital loss scenario if you are
using variable investments. (Note: Nearly all variable
investments can lose principle a.k.a. your hard earned capital!)
And, don't forget that though using simple tax write offs after
gain/loss matching and selling can recover up to a third of your
lost money without a lawsuit -- that only applies to
non-qualified funds only!
But, if it is an IRA - forget
it! THE ONLY GUARANTEE TO NOT GET CAUGHT IN THIS TRAP, WHICH MANY GET
IN WITHOUT EVER KNOWING IT -- Is to transfer your remaining IRA money, or
the bulk of it - into an investment that can hold it and
GUARANTEE no principle losses for the rest of your life! If
you need "higher risk" on some of your investment money, cool your jets on
your retirement funds and put the hammer down on your "Non-IRA" type
accounts. (With the assumption that the higher risk brings higher
rewards) Just don't forget that higher risks also brings higher capital
loss potential as well!
We already reviewed the two main choices you have for finding a
new and safer home for your investment money. The first
was the bank. We already told you how they operate with
using securities and annuities as the last result to keep your
money with them. I'm sorry if it sounds harsh. It
may even sound like I am saying bad things about bank investment
people and their marketing strategies because I have to compete
with them. Well, I do lose investment money to banks.
But they are not my biggest competitors.
competitors are the "Charlie Keatings" of this world who I
actually lost investment money to back in the 80's - when I
first moved to Arizona. (Yes, I know I already brought his name
before) His former Savings & Loan was offering non-secured
interest securities to Arizona depositors that paid an interest
rate higher than anyone in town could offer. That is,
right up until they came and shut the doors and then later
tossed him in prison for his illegal activities. If you
are a young investor, you may not remember him. One thing
is for sure, he had an ego and a taste for an extravagant
lifestyle - bigger than Texas! (He also is in the history
books for bringing down the U.S. Savings & Loan industry to it's
Yes, my biggest
competitors are the "legends in their own minds" investment
salespeople who promise you the world up front - and deliver a
few chunks of dirt instead. The "Don Juan's" of investment
lure that love themselves a lot. But, they love even more
to tell you anything you want to hear -- and I mean anything --
to see what you do next! They are the "braggy", "flashy" types
that come after your money! They are downright
"commanding" in order to gain your trust. Once they
get your trust -- your money passing from your hands and into
their hands is the next step!
If you came to this information
site because you are a scorned or jaded investor because someone similar to
what I have described -- lied or cheated you, or just took advantage of you,
would you not agree I am giving you an earful to think about? If
you agree, I am accomplishing my goal in producing, publishing, and paying
for this website. After years of observing the countless times tax
clients came to me "after the fact" of losing money in needless fees,
charges, penalties regarding their money - I felt it was time to try and
educate them more on how to avoid losses. And, I hope that by giving
this information away for free, you will consider me and my company the next
time you are searching for a new financial advisor.
The second, and
best tax advantaged option is to take the time now and
investigate the tax deferred annuities offered by some of the
largest firms in the world (they just happen to be insurance
companies) with an investment professional and company that is
founded on honesty, truth, and the
preservation of your capital!
I WANT TO HEAR
FROM YOU. I WANT TO HEAR WHAT HAPPENED TO YOU. I
WANT TO KNOW "YOUR" STORY.
Feel free to
send me a short E-mail right now. It will be in the
strictest confidence, I promise! And my own, personal
response will follow in 24 hours or less back to you. I
PROMISE, THERE IS NO OBLIGATION.
E-mail Your Story to M.D. -
Those Who Say That
Annuities Shouldn't Also Be IRA's (or other qualified plans)
--Ignore the Core Reason Why We Recommend Them!
competing advisors or institutions (that investment guy at the
bank for example) may throw some objections to putting your IRA
into a tax deferred annuity. First, some lawsuits have
been filed saying that it is malpractice to wrap your IRA into a
tax deferred annuity shell since the TDA is already tax deferred
without making it a qualified plan.
To that, I say if
you need a vehicle to guarantee the principle yet still preserve
the chance for good capital growth, only an indexed annuity can
do that -- with or without the IRA status! What does it really
matter as long as the vehicle meets your suitability? And
that suitability is distinctly defined herein as "NO MORE
LOST MONEY, NO MORE CAPITAL LOSSES and/or NO MORE CHANCE MY IRA
CAN LOSE MONEY AND BAR ME FROM DEDUCTING THE LOSS ON MY TAX
If you truly want
to preserve your capital for the rest of your life, I now invite
you to go "guarantee" shopping right now. So, where do you
look for those guarantees? Insurance companies!
Don't you feel that auto and homeowners premium you pay so often
is a guarantee against loss? Don't you trust your life
insurance company to pay your guaranteed TAX FREE death benefit
upon your demise?
So, what is so
difficult about trusting an insurance company to hold and grow
what's left of your investment portfolio? Especially if they
can offer you stock market type returns in the new Fixed Index
Annuities (FIA's) our firm promotes? And, can you visualize
trusting again --an insurance company that has about 40 Trillion
dollars and some of the highest ratings in the industry?
(They are just one of many we are appointed to represent for
Also, those who say
"Qualified Plans" shouldn't be in tax deferred annuities need a
little lesson in history. We can't ignore those wonderful
folks who transferred all those increments of knowledge from the
textbooks and their own personal experiences in life - right
into our BRAINS! Those wonderful teachers! (O.K.,
most of mine were wonderful) They have had the 403-b IRS
statutes long before you got your 401-k at work. And, it
is inherent in that very product also known as a TAX DEFERRED
ANNUITY OR TSA for short, to be one and the same. A
qualified plan and an annuity! It is inherent that the
"Qualified" wrapper and annuity are one! It is the very
product sold and promoted in every public school in the United
States, as well as other government agencies! So, if we
trusted our teachers for the most part to educate us, can we not
trust them now to use similar insurance vehicles to fund what's
now left of your investment portfolio?
Lastly, a Few
Tax Advisors Need to Brush Up on What They Tell Their Clients
About Tax-deferred Annuities!
tax advisors may say that you should never buy an annuity
because you can't deduct the losses as a capital loss. And
you are also forbidden capital gains treatment by the IRS on
your capital (income) gains. I say this on the lack of a loss
deduction don't buy a variable annuity if you don't like that
A fixed annuity is
"wired correctly" to only make you money. Some very
conservatively. Others, quite aggressively with the indexing in
the standard securities indexes that our firm offers. We
feel they are now the best home for your "safe" money right now
and for many years to come. And, since they can be freely
transferred with no tax liability when a direct transfer is
done, they always remain flexible in case your circumstances or
your investment objectives change as well.
deferred annuities are what is called a "beneficial asset" for
estate planning purposes. What this means is that as long
as you name a beneficiary to receive your money once you pass
away, the money transfers free of federal inheritance tax and
more importantly, free from any probate! Though the bank
now has a similar feature in their products called a POD
(Payable upon death) feature, I have often seen signature cards
that list a joint tenant on the very same bank account when
assisting the funding of living trusts created by our firm for
our Arizona clients.
Ask any lawyer what
that means, and you will see the problems with some of these
bank products. Because the bank employees are more often
than not under trained in estate planning concepts, a probate
may very well be ordered when accounts list multiple forms of
ownership or death payouts! I have even sat in with the
surviving heirs after losing a senior client, and witnessed
these kind of bank product mix ups!
If mixed up and confused bank
staff can't fully understand how these POD beneficial designations conflict
with also leaving the account in joint tenancy with rights of survivorship
ownership, you can pretty well be guaranteed the estate will be subject to
extreme confusion and extra cost. In reality, I have noticed that bank
managers get the account transferred out to the heirs in such mix-ups,
but I really wonder what they told the bank examiner a few weeks later?
Well enough on the complete and
total incompetence that seems to reign in today's modern banks. Bank
employees become victims of their bank employer who is not willing to invest
the proper time and expense in their estate planning knowledge. They
underpay many of these employees who want to learn, and under-train them on
purpose! Many are trained to just be "robotic" in nature to take your
deposit, give you a smile (if you are lucky) and issue a deposit receipt.
Beyond that, they can mention other bank products if you look like the
inquisitive type (and get a small bonus for the referral), but that is about
he full depth of their abilities! Is it any wonder that the largest
investors who constantly are concerned about their estate planning --
avoid putting very much money in a bank
Regarding the fact
that you have to pay ordinary income taxes on your gains, guess
how all those bank products get taxed? Yep, same way!
Those gains end up on IRS Form Schedule B, not Schedule D.
(Income earnings get taxed at your full marginal rate, with no
special treatment either) So ignore this objection when
the bank brings it up. They are just jealous!
If it comes from
the broker or brokerage firm...well, if you read and understand
what I have said up to now, PRESERVING CAPITAL is the reason to
think twice about maintaining any more large brokerage accounts
from now on. Yes I openly admit that stock dividends get
taxed at just 15%* capital gains rates as a maximum (plus the
full rate from your state), but your losses are still losses!
The only way to avoid loss
in a variable investment portfolio is to AVOID THOSE WHO SELL
Had you done that before, you
wouldn't be here right now reading this!
*Preferential treatment of
"Qualified" dividends, capital gains tax rate increases, etc. --
are all facing changes under the current administration.
The trend will be to increase taxes and reduce past preferential
For The Wrap Up
you can't believe a former mid-western Iowa farm boy --
who can you believe?
Guess what they buy
for you when you win and collect a lawsuit? An annuity,
otherwise known as a structured settlement. Guess what they
recommend when you win the lottery? An annuity. Guess what they
pay you from your pension fund when you retire? An annuity. Do
you get the point?
the most common way for giving you systematic payments of income
when you either need or want them!
If you contract
with an annuity company for a set time frame, amount, or one of
many other payout options, the IRS will allow about 70% of your
systematic payments to become tax free because the original
principle you paid into the contract has to be accounted for.
This is done by factoring the payback to you or your spouse or
heirs during your remaining lifetime, or the combined lifetime
of you and your spouse, or even you and another person!
(non-spouse) So, with just a little common sense on how to
take income out, those that run down annuities (again, it is
mostly jealous securities brokers) as bad investments do so
because they don't like competing against them.
In the past few months, investors
have discovered "safety" as a standard again in common sense
Millions are coming into these annuity products. Not because
the blind are leading the blind. The money is rolling in
like a summer monsoon storm here in Arizona because investors
are rediscovering the proper percentages of your investment
money which should be in variable type investments. And
what should be held in fixed investments. When it rains,
you run for shelter. When it hails, you try to protect
yourself, your loved ones, and then your property. If
you just lost money or are still in the process, do I have
to tell you to start running now?
I can't make you run to me and my services. But, I will
invite you to calmly but briskly walk away from the source of
your damage and consider an alternative the boys (or gals too!)
at the local golf club may still not embrace in public.
In public, you will
still hear jests and bragging about how much someone made on an
individual stock they owned. But, believe me, as an
accountant, stock pickers that don't do it full time don't brag
about their losses - just the few winners they may get from time
to time. But, they tell me about their capital losses every time
so I can deduct them! I have seen many senior clients go
to their grave in my long practice. Dozens and dozens of
senior clients. Many took huge un-deducted capital losses
with them! Sometimes, it was because their broker lost
But, many did
themselves in. They got that "tip" from a friend that
turned into a "worthless security" tax deduction a few years
later! Or, some tried to time the market or worse - tried to be
a day trader!
the major pros who do this full time have a hard time beating
the market index's what makes you think you can, if you are a
Can you see why my promotion of
safety, using market index's and the largest and highest rated companies
that have better reserves than any bank is forced to keep is a safe bet for
me and my firm as well? Yes, it reduces my risks to almost zero --
that you would ever have a reason to sue me. Do you think you could learn
to live in a "safe" zone regarding your remaining investment portfolio?
Or at least part of it? And use an honest investment consultant regardless
of where you live? Many are doing just that now with my online
Repeats Itself. Will You?
Babe Ruth saw
many lose everything in the great depression. Some undoubtedly
were very close to him and his family. Many lost their
lives or took their lives when they got wiped out by the stock
market crash. You are here, now, reading this final
segment most likely because your gut is wound tight in agony
from what you have gone through lately with an assumed loss of
capital. It may be no comfort to soak in the knowledge I
have shared with you, especially if it came too late!
Since the stock
market is again in "crash mode" right now as well as the chance
that you may now be a securities victim (by your moves or
someone else's), I think the timing of the advice on this
website is excellent and I hope it helps you decide what is
proper and smart regarding your remaining investment capital.
I would not be a
professional advisor if I also didn't ask -- what if
things get worse?
What if the
market really does crash like it did in 1929?
Well, if it does
and you just ACAT what is now left of your money to another
broker, you will have more tax deductions won't you? But,
the Babe might have taught us a lesson you are not aware of.
He watched most of his friends lose everything...as he
comfortably smiled because he had most of his money in an
annuity!!! He didn't lose a dime in his "insurance based"
TO READ MORE
ABOUT HOW THE BABE USED ANNUITIES TO AVOID FINANCIAL DISASTER-
a few insurance companies have gone out of business, but
the industry to date has come in to lift them up and restore
them so that the reputation of "safety first" may go on.
To my knowledge,
no policyholder has lost a dime in a fixed life insurance or
annuity contract in the the United States right up to this very
(Each state also maintains a state insurance fund funded by each
carrier who files and does business in the state. But, we
can not legally use that to entice you to buy a product based on
these funds. First, because they could take a while to payback
when there are multiple claims. Second, because they could
be exhausted and not pay at all in dire catastrophic "mass
every life insurance company that does business in America must
maintain at least a dollar in reserve for every dollar they take
in, and some do much better than that, solvency is not a
problem. As long as ratings are high, and remain high,
along with high assets held, you have plenty of "safe" features
you can trust to protect your money should you decide to
transfer some or all of your investment portfolio to one of our
carriers, utilizing the "worry no more" transfer services
of our professional advisory firm.
If you are a victim
of a securities firm or broker, I am counting on you to
investigate what I am saying and openly invite you seek out my
help at this time. I would like to discuss your specific
situation and then formulate a game plan of action to help you
Preserve Your Capital that is left! And, if you decide
you want to also try to get lost capital back with a qualified
law firm, my documentation services and free referral service is
available as well!
The first meeting
is free, so please send back contact information from this
website portal and briefly include your specifics. FSI
receives no income or benefit, directly or indirectly from any
CPA or Lawyer referrals we may make on your behalf. We do
receive income from insurance products we help our clients into
(100% of your money is invested without any sales charge
deductions*)and from fees for tax or legal document preparation
services we provide to our clients.
And, I also provide
full Realtor® services as an
Arizona real estate consultant through separate contracting, for
the luxury of my clients to have just one financial advisor
handle all of their financial needs. For non-IRA funds,
looking at real estate here in Arizona makes a lot of sense
right now, after prices have fallen. A bottom is now in
you have interest in, there is no risk or obligation on your
part to contact me. Will you please drop me a quick note
to tell me what you think of this free information site?
P.S. I can
attest that I fully understand the market and the fact that what
goes up also comes down. Recently, we entered a down slide that
may have yet to find bottom in some areas here in Arizona in
real estate values. (I'm licensed in real estate also)
If by chance, someone happens
to mention to you that "real estate" is a good home for your
401(k) rollover, or large IRA account, or Roth IRA you'd better
have a chat with me first.
estate INSIDE your IRA on the wrong side of this cyclical
investment would not only risk your principle -- but as I
mentioned above -- stop you from any loss deductions as well on
your income tax returns!!!
Early surrenders of any annuity contract generally will cost a
surrender charge that varies per contract and carrier chosen.
Starts With The First Step
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