Our Tax System

Suppose that ten men go out for lunch every day and the bill for all ten comes to $100. If they paid their bill the way we pay our taxes, it would go something like this… The first four men (the poorest) would pay nothing. The fifth would pay $1. The sixth would pay $3.…

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Money Policy and the Fed

Is it just me or do you get the feeling that the feds rewrite their money policy almost on a daily basis? It seems reactionary at times, but it’s the reaction caused by a previous policy blunder that creates a different reaction and a different blunder to follow….it’s a vicious circle! So what do the…

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What’s A Trillion Dollars Look Like?

Most of us are hearing about the government spending a Trillion Dollars, but to the average American it’s just a word. Some of you may have seen these graphics floating around the internet lately, but if you haven’t you need to take a visual look at a Trillion dollars. First off a Trillion is a…

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Where Do Your Investment Dollars Go?

Ever wonder where your investment dollars end up? Jack’s story reveals some very interesting truths about your investment dollars. Jack is a middle aged guy who works hard to make a living. He is happily married to his wife, Jill, and they have 3 children. They live in an average home, with an average income;…

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Your Financial Plan: A Bucket With Holes?

You can fill a bucket with holes one of two ways. You can add more water to it, faster than it loses it, or you can plug the holes, add the water, and watch it overflow. Which does your financial advisor have you employing in your financial plan? What would you consider to be the…

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Dynastic Trust Planning

A Dynasty Trust is a multi-generational trust designed to preserve an estate when passed from generation to generation. Like a Living Trust, the assets in a dynasty trust will avoid probate. The assets, however, remain in this specially designed trust, giving the heirs all the use of these assets, but never taking outright ownership. This…

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Is Your 401k Now A 201K?

Has the economy taken away years of gains in your retirement plan? Is there a better way? I read a report in US News that over 2 TRILLION dollars have been lost within retirement plans. How many built in a 30-40% market decline and are still able to reach their financial objectives? Most 401K’s and other…

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We Finance Everything… Even When Paying Cash

For our discussion we are going to define the word “finance” as simply a cost. It’s obvious that when we borrow money for a purchase we have an additional cost, the cost of money or interest. When we borrow someone else’s money we must pay them interest for the use of that money, this is…

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Are interest rates being held artificially low?

Currently the feds have elected to flood the market with additional funds for mortgages and in particular for refinancing current mortgages. Rates are as low as 4.5%. But how long can this last? Let’s look at the junk bond market as a potential indicator of what could happen. First off what makes a bond a…

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The Truth About Volatility

How Long Does It Take? Here’s a quick quiz for you: Assume you started with $100,000 in your account. If your investments decreased by 25% percent one year—then increased by 25% the following year—how much would be in your account? $100,000 More than $100,000 Less than $100,000 The correct answer is “C”—less than $100,000. Let’s…

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