Protect Your Retirement Lifestyle from the Threat of Inflation

According to the U.S. Energy Administration, in 1981, a gallon of gasoline cost an average of $1.38. Based on current figures from the U.S. Department of Energy, the percentage increase in the price of a gallon of gasoline is 148% over the last 30 years. Meanwhile, data from The Congressional Research Service and the U.S. Administration on Aging show that the median income for persons age 65 and above during this same 30 year period has increased only 48 percent. This trend is not limited to just gasoline prices; the costs of housing, food, energy, and many other commodities have soared through the roof.

Most Americans are familiar with the concept of inflation and they understand that inflationary pressure makes it increasingly harder to get by, financially. What many people are missing is the connection between the last thirty years and the next thirty years.

When planning for retirement, people commonly anticipate a period of approximately thirty years. But yet, they fail to ask a simple question, “If inflation drove the cost of living up so dramatically during the last thirty years, what will happen over the next thirty years?”

If gas prices continue to increase at the same rate, in thirty years a gallon of gas will cost close to ten dollars! Food and other living costs will also experience similar cost increases. What would be the impact of these massive cost of living increases on your retirement lifestyle? Could you afford to pay over $8.50 for a gallon of gas?

The answer is grim for most prospective retirees.

There’s no doubt that inflation is a major threat to retirees. Yet, with proper planning, you can mitigate inflation’s impact.

The Hidden Wealth System’s Personal Protected Pension Plan™ can help you protect against inflation. Our Personal Protected Pension Plan™ provides you with a proven, safe-money solution, that helps protect your retirement from inflation; a retirement that is also tax-advantaged and free from market losses. Our unique design increases your retirement income as inflation rises to help protect your lifestyle from the effects of inflation. You can’t hope to keep pace with inflation using traditional retirement programs; learn how you can plan to beat Inflation. Inflation is a very real threat to retirees and those planning for retirement, but with careful planning, the risks can be minimized.

Don’t risk running out of money before you run out of life. Protect your hard-earned life’s work and immunize yourself against inflation. Imagine, living your retirement years with an income stream that is tax-advantaged and inflation-protected; safe in the knowledge that your income affords a lifestyle that allows you to be really retired. Contact Millie today at (866) 998-7699 or email her at: millie@TheHiddenWealthSystem.com and begin protecting your savings against inflation today!

More Wall Street Volitility - Get Off the "Dow Jones Coaster"

Do you have money in the stock market? If so, you are no doubt suffering from whiplash caused by watching the market shoot down, down, up, and then down some more. It’s like riding on a roller coaster that you really didn’t want to get on in the first place.

But, it doesn’t have to be this way! There’s no reason to ride on the “Dow Jones Coaster” every day. Our clients did not lose a single penny during these recent market swings. That’s because they only participate in market gains; they never give back any of their earnings. In our unique design you never have to make up for any losses. Not only is The Personal Protected Pension Plan™ safe from market loss but, when you retire, your distributions are tax-free.

If the past month has taught us anything, it’s that our political system is a mess—and it’s dragging the economy down the tubes with it. Between the debt ceiling debacle and the continuing European debt crisis, traditional investments face a completely uncertain future. To make matters worse, when the economy begins to recover (or even before then), inflation is likely to erode any hard-fought gains that the market may experience.

What should you do? The answer is quite simple: stop exposing your retirement to market risk! The Personal Protected Pension Plan™ is tax-free, market risk-free, and protected against inflation. Stop exposing the fruit of your life’s work to unnecessary (and rapidly increasing) risk. Stop riding on the Dow Jones Coaster for hours a day!

To see if The Personal Protected Pension Plan™ is right for you, email Millie, our Client Concierge, at millie@TheHiddenWealthSystem.com or phone her at (866) 998-7699. Please provide Millie with the two best times to contact you. We are currently experiencing a high volume of inquiries and two contact times will insure that she is able to reach you. There is absolutely no reason for you to subject yourself to the rapidly increasing volatility of traditional stock investments. Wall Street is simply not the solution for couples and individuals that are looking for steady, reliable growth. Contact us today and let us help you discover and uncover your hidden wealth!

Heavily Invested in the Stock Market? Get Ready for the Rough Remnants of Summer

If you are heavily invested in stocks, you probably won’t like what you’re going to read, but you should pay attention! According to USA TODAY, there are unsettling similarities between the current state of the markets and their position at this time last year. You may recall that, early last summer, the Dow Jones average fell 13.6% before beginning a gradual recovery!

Among the factors behind last year’s market drop were fears of a “double-dip” recession, high, long-term unemployment and worries about the European debt crisis. Do those problems sound familiar? They should. We are facing those same challenges today. As if these aren’t enough, we are currently watching as the President and Congress attempt to strike a deal to prevent the U.S. from defaulting on its obligations for the first time in history. From an investor’s standpoint, this situation appears to be lose-lose; either the U.S. defaults, which would be catastrophic for the market, or the government continues to borrow money hand over fist, leading to future high inflation.

There are plenty of reasons to worry about the state of the stock market. While it’s impossible to exactly predict the future, many experts agree that a 10% downward correction is very probable.

These events remind us that the rules of investing have changed forever. Twenty years ago, simply investing into an index fund may have been a sound strategy. Unfortunately, since 2007, international equity markets have been incredibly volatile. Many people’s life savings disappeared down the drain as the stock market plunged. While the market has recovered to some extent, there is absolutely no reason to suggest that it is permanently back on course.

What can you do to protect yourself from the twists and downward turns of Wall Street? We proudly offer the following safe, proven solutions:

1. Go to: http://www.mymoneyalarm.com/ and register for our unique educational service, which sends you market change signals prior to the critical decision points. These signals alert you to changing conditions and guide you to the best performing mutual fund choices. These signals also make you aware of the best time to move your money out of equities. This unique program doesn’t require you to move your money from your existing account(s) to a new IRA or 401K. You simply enroll in our educational service which then provides you with the proper signals that help you grow and protect your hard earned savings. This service works for IRA’s 401K’s, 403B’s, mutual funds and college savings accounts.

2. Our unique design, The Personal Protected Pension Plan™ provides you with security from market uncertainty because your money is only linked to the market’s gains and is never actually in the market. As a result, our clients never lose either their principal or their gains. This plan design avoids the dual threat that higher taxes and inflation pose to your retirement income. If you’re tired of daily worrying about the market swings, higher taxes and inflation, contact us for more information. Let us create a plan to safely grow and protect your wealth! To schedule a no cost no obligation Personal Protected Pension Plan™ consultation contact our Client Concierge, Millie, at (866) 998-7699 or email her at millie@thechuckoliverteam.com

Do You Want to Work Into Your 8o's?

As the economy continues to sputter and the cost of living continues to increase, baby boomers are becoming increasingly concerned about their ability to retire—and with good reason. For those fortunate enough to still have a job, salaries have typically held steady or even been cut. Meanwhile, gas prices continue to climb, while investments and real estate have largely lost value. Add to this unpleasant cocktail the threat of major inflation in the near future and it is very easy to see why prospective retirees are concerned.

As economists dissect recent data, they are coming to the conclusion that many baby boomers will have to work well past the age of 65 before they can afford retirement. In fact, some economists are suggesting that many would-be retirees will be forced to work well into their eighties before they have enough saved for retirement. While some have dismissed these forecasts as overly gloomy, it is a mistake to ignore them altogether. It is a fact that our economy is currently experienced painfully weak growth—at a time when we need to be adding jobs rapidly to keep unemployment under control. The future of our economy is also very unclear, as many of our manufacturing and communications jobs have been outsourced. And while the stock market has rebounded from the crash of 2008 and 2009, investors remain unconvinced that the recovery is going to last. Finally, even if our economy is able to overcome these obstacles and regain strength (not to mention full employment), there is little question that inflation will be a factor in years to come. The question is not whether we will experience inflation or not—the question is how severe will it be?

Meanwhile, you have been working hard for decades, saving and investing your money in hopes of reaching retirement while you are still young enough to enjoy it. Now, through no fault of your own, your plans are in jeopardy. I have good news for you, however. It’s not too late to seize control of your financial future. A carefully crafted plan can help you weather the economic storms we are currently experiencing—and will make the retirement of your dreams possible. Get in touch with us today and let us create a strategy to protect you from the dangers of inflation and economic stability.

Make the Most of the 2010 Tax Relief Act

Are you taking full advantage of the 2010 Tax Relief Act? The Act was passed into law in an effort to aid our economic recovery—and there are provisions that have a major impact on estate planning. As it stands, the relevant benefits of the Act are slated to disappear in 2013—meaning that in order to take advantage, estate planners must act this year or take their chances, later.

What does the Act mean to your estate planning? Specifically, the level of exemption for gifts is increased from one million dollars up to five million for individuals and ten million dollars for married couples. In other words, it is possible for benefactors to transfer up to five million dollars to beneficiaries before the gift becomes subject to the gift tax. This increased exemption level represents a great opportunity to create trusts that will benefit future generations. This exemption is “portable”—which means that the exemption can be passed to a surviving spouse, possibly making complicated “bypass planning” unnecessary.

While there are a number of benefits that apply to all taxpayers, the tax benefits in the 2010 Tax Relief Act can be very valuable for couples and individuals that are in the midst of estate planning. It’s debatable if the exemption will be reduced all the way back down to one million dollars in 2013. Remember, the tax code has always been subject to the whims of politicians. In a presidential election year, the world of politics can be even more contentious than usual. So, if you could benefit from the increased exemption level, it is wise to act now before it is too late.

It is important to recognize that each individual situation is different—you should always consult with an expert who can help you make the best decision for your future. Please contact The Chuck Oliver Team at (800) 825-1766 or email millie@thechuckoliverteam.com to set a time to discuss your situation. We can help you determine how to make the most out of the 2010 Tax Relief Act.

Personal Protected Pension Plan

The Personal Protected Pension Plan is a proven, safe money solution for your retirement income needs.  In this unique plan design, you particpate in the up-side of the market but never lose money to the down-side of the market.  Click the link below to watch this short video to see why Debbie, one of our clients, decided to stop giving her gains back to the market and never lose principle again.

Personal Protected Pension Plan

Can Social Security Survive the Coming Economic Storm?

2012 will be the year that the first members of the “Baby Boomers” generation become eligible for full Social Security benefits. Starting last month, there has been an average of over 11,000 new Medicare-eligible applicants each day… a trend that will continue for the next 19 years as the Baby Boom generation reaches retirement age. In addition, 2010 and 2011 are expected to be the first consecutive years in which Social Security pays out more in benefits than it takes in through payroll taxes. Social Security has paid out more than it took in once previously, during the “dot com” crash, but that was a one year blip—whereas the current shortfall is expected to persist into the future. As this deficit continues to grow, will the government be able to deliver the benefits that many retirees depend on? What other effects will this crisis have on the larger economy?

Before we continue, a brief review of the concept of Social Security: as citizens work, a portion of their earnings are diverted into a Social Security fund. These funds are in theory used to repay contributors once they’ve reached retirement age, providing a reliable source of income to aid them in their retirement. In practice, the payroll taxes being paid right now are being used to provide the benefits for current retirees. That system works fine, as long as the workforce is large enough to support retirees. That has also been the case—until last year. 2010 and 2011 are expected to be the first consecutive years that Social Security ran a deficit—a trend expected to worsen in the future.

In other words, if changes aren’t made, Social Security is going to run out of money. That doesn’t mean retirees will stop receiving benefits, of course, because the federal government can print money to cover their obligations. But as you probably know, printing money often leads to deadly inflation and soon higher taxes will be needed. And inflation is the greatest initial concern of most experts as we evaluate the state of Social Security. Combine the Social Security crisis with the current unprecedented federal deficits that the government is running (at present trying to pass a higher credit card limit to continue trying to out-spend our economic crisis), and high inflation seems unavoidable, even if corrective action is taken.

So the question for you is this: how are you planning to manage these coming risks? Do you have a plan? Inflation, though it can potentially wipe away your savings, can be managed with proper planning. If you don’t have a plan, it’s time to get started. The coming Social Security crisis, combined with current government debt levels, mean that inflation and higher taxes are surely lurking around the corner. Don’t be caught by surprise! Take action now and learn what you can do to make sure you protect your retirement. Simply call (407) 478-1599 and let’s get started

Stock Market Myths That Won't Go Away

From the Wall Street Journal

In tumultuous economic times such as these, your broker or financial adviser usually offers calming words of wisdom and advice. Stay in the market long enough and you will hear these many times. How true are these words of comfort? Let's examine 10 of the most common and see how they hold up.

1. This is actually a good time to invest in the stock market." Oh, really? Ask your broker if he's ever warned a client that it was a bad time to buy stocks. Did he or she do this in October 2007? Maybe it was in February 2000, then? Even a broken watch has the right time twice a day, but no one wears one. Asking a broker if it's a good time to invest in the stock market is like asking a barber if you need a haircut.

2. "Stocks, on average, make you about 10% a year." This claim is based on past history, stretching back to the 1800's. About three of the claimed 10% is from inflation. Stock market data from the 19th century has been shown to be unreliable. Twentieth Century data is complex due to World Wars and globalization. Remember, stocks only produce average returns when you buy them at average prices. If you buy stocks when they're expensive, your returns are less than average.

3. "Our economists are forecasting..." Ask your broker if his economists accurately predicted the most recent recession. If they did, when did they make their predictions and which of his clients did your broker warn? What they usually predict is a slow-down, not a recession. That's like a weather forecaster that predicts a 50% chance of rain; no matter what happens, their prediction will be correct.

4. "Investing in stocks lets you participate in the growth of the economy." In 1969 the U.S. Gross Domestic Product was about $1 trillion and the Dow Jones Industrial Average was at about 1,000. In 1982, the U.S. economy had grown to $3.3 trillion. Where was the Dow in 1982? At about 1,000.

5. "If you want to earn higher returns, you have to take more risk." The only way to earn higher returns is to buy stocks cheap in relation to their future cash flows. Your broker probably thinks that "risk" means "volatility." Volatility usually means price ups and downs. Risk means the possibility of losing your principal.

6. "The market's really cheap right now. The P/E is only about _ _ _%." The price/earnings (PE) ratio, compares share prices to annual after-tax earnings. This index is misleading because earnings are so volatile; they are elevated in a boom and depressed in a bust. There are better measurements of stock expense. Try Dividend Yield, the cyclically adjusted PE or "Tobin's q." Right now, these metrics say that the stock market's pretty expensive.

7. "You can't time the market." It's certainly true that no one can catch the market's twists and turns. But brokers use this phrase to keep their investors from pulling out their cash as the market is tumbling. The bottom line; if you invest when stocks are cheap, you will usually make money. If you buy when stocks are expensive, you will usually lose money. It sounds simple, but it's true.

8. "We recommend a diversified portfolio of mutual funds." If your broker means mutual funds with different names and "styles" such as: large-cap value, small-cap growth, mid-cap blend, etc; then this is just a marketing ploy. These funds are typically 100% invested, in stocks, all the time. Even "international" funds offer less diversification these days because the global economy has tied so many things together.

9. "This is a stock picker's market." If it is a stock picker's market, what makes you think that you, or your broker, is the right person to do the picking? The vast majority of portfolio managers notoriously under perform the market.

10. "Stocks outperform over the long term." I guess than depends on what you define as "the long term." The economist John Maynard Keynes is famously quoted as saying, "In the long run, we are all dead."

Are you tired of hearing the same stale lines from your broker? Our Personal Protected Pension PlanTM is free from market risk and, most importantly, market loss. If you want a tax-favored retirement where you never give your gains back to the market, please contact Millie at (866) 998-7699 or email :

millie@thechuckoliverteam.com

to schedule a time for us to discuss your concerns. We have solutions that are designed to safeguard your retirement.