Preserve My Capital

Preserve My Capital Information Site

Updated with new information on our economic crisis.

Content Last Updated: 01/09/2012

The Latest Information At Your Fingertips!

Have 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 - Welcome! 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!

TIP: Everyone loses money!

Everyone 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.

However, an 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 year!

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 of.

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!

Preservation of 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 time around!

You have to be careful not to get burned when you trust 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 even want.

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.

Yes, everybody 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!

If 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 lawyer.)

And, regarding 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 deduction purposes.)

Otherwise, without 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 insult....

Therefore, coming 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...

TIP: You May Need to Find a New Home for Your Remaining Portfolio!

I 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.

* Some contracts require you hold to maturity in order to have full principle guarantees.

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 authorize them.

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.

The insurance 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!

Most modern 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 FIND ELSEWHERE! 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 loss afterwards.

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 securities brokers! 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 help you!

Or, if, at first, you just want pure education on fixed rate and indexed rate tax deferred annuities, 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!

I 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 me.

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 tax "basis".

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 purposes.

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.

My biggest 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 knees!)

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.

TO E-mail Your Story to M.D. - CLICK HERE

TIP: Those Who Say That Annuities Shouldn't Also Be IRA's (or other qualified plans) --Ignore the Core Reason Why We Recommend Them!

Some 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 RETURN!"

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 your behalf)

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!

Some 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 detail.

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.

Additionally, tax 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 today?

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 THEM!!! 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 tax treatments.

It's Time For The Wrap Up

If 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?

Annuities are 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 investing. HAVE YOU?

Millions and 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 them money.

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!

If 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 do-it-yourselfer?

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 services.

History 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" annuities!

TO READ MORE ABOUT HOW THE BABE USED ANNUITIES TO AVOID FINANCIAL DISASTER-

CLICK HERE.

Yes, 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 minute! (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 death" claims.)

Since virtually 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 sight!

Whatever service 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? Thanks!

Sincerely,

M.D. Anderson, President

Financial Strategies, Inc.

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.

Buying real 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.

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