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Saturday, December 12, 2009

Did You Get Your 401(r) Royalty Check Yet? What The Heck is That?

I recently got a teaser email that was touting a 401(r) royalty check. First let me share with you some highlights about this investment that for the most part is true, and then I'll tell you what a 401(r) check really is. Here are a few points the email (from our friends at Personal Finance) was touting:

Not many Americans have heard of this secret money strategy.

Unlike IRA or 401(k) plans, 401(r) lets you draw checks at any time, at any age and with no income requirements of any kind. I strongly believe that every man, woman and child should be taking advantage of this strategy.

Paychecks can be $10,000, $20,000, $50,000 or more Depending on your particular situation. The best news is, they are largely tax free (you may have to pay tax on 10 - 20% of the money)!

These normally aren't publicized like traditional IRA or 401(k) retirement plans. Perhaps that is why so few know anything about them.

In a recent article, Kiplinger's Personal Finance pointedly said of this investment "a hidden asset class that Wall Street hasn't awoken to."

This amazing asset can give you a nearly tax-free income you can start collecting at any time.

Forbes magazine said that they are "a good place to be during this market funk. They offer good yields, tax breaks and strong growth potential."

Barron's stated, these income streams are a “pay off for taxpayers... offering double-digit returns today.”

"Enjoy largely untaxed income"
—Forbes Magazine

OK, so what exactly are 401(r) Royalty payments? Why are they the best place for your savings now? How can you get your name on the list to start getting paid this mostly tax-free income?

Actually I think the 401(r) is a play on the Royalty word. There is no such section in the IRS code that I can find. The 401 section ends with (o). What they are really pushing is MLPs. I have written about them before many times, and am really fond of the investment vehicle!

Actually with MLPs you are deferring the taxes, and you will have to pay them later. However, you can defer them for a long time and maybe even pass your MLPs onto your heirs.

If you’re not familiar with MLPs, they are publicly traded partnerships called Master Limited Partnerships. They focus mainly on the energy arena. Primarily dealing with natural resources like coal and oil. Most of the large and stable MLPs are pipeline companies. They are set up similarly to REITs. MLPs pay no corporate tax as long as they pass along essentially all of their income to unitholders (the limited partners, those who own shares of the MLP). MLPs Generally pass along a lot more money than they make, and you can defer your taxes on a lot of it. Of course, "no taxes" and "deferred taxes" are very different. Check with your tax advisor and do your research on MLPs. They may well fit into your investment strategy.

MLPs can be somewhat difficult to get info on. Check out my new "How To Analyze Anything" video course for simple strategies and discover free online tools to learn all you need to know about MLPs (and much more). To get your Free MLP Report go here.

Thursday, December 10, 2009

Guaranteed Retirement Contracts

After the melt down in the stock market, many of the millions of baby boomers who are now retiring (or close to it) are looking for a solid retirement vehicle. How would you like to own Guaranteed Retirement Contracts?

If the market tanks, you get paid. If the market goes nowhere, you get paid. If the market goes up, you get paid even more. Some of these contracts have paid as much as 11% on your money.

What's more, You can start collecting large monthly paychecks right away. If you are at all worried about the stock market, and you are looking for an investment that will send you a paycheck every month, no matter what happens with the economy or markets, these contracts are definitely something you should consider.

Barron's calls these unique investments, "The new way to retire." And Money Magazine stated that these contracts, "will become the retirement investing rage." The Journal of Financial Planning said that these contracts, "could be a magic bullet."

The monthly checks you receive are guaranteed, not only by a cash-rich U.S. firm, but also by the state government in which the company operates.

If you want to guarantee a lucrative paycheck every single month, no matter what happens in the markets or the economy, this could be the perfect investment answer for you!

So what is this unusual investment that can guarantee you a nice check every month no matter what the market does? Indexed Annuities. There are different types of annuity contracts you can buy, but the indexed version is your best option in my opinion. Why? Because it is tied to the market when the market is rising, and reverts back to a guaranteed interest plan when the market is dropping. You get the best of both worlds! Why worry about another drop in the market when you can benefit ONLY from up moves?

Most people don't realize that every state has a state guaranty fund that backs annuity contracts. This state fund will kick in and pay you should the insurance company who sold you the contract go out of business. Normally the guaranty fund insures your annuity (and life insurance contracts) up to $100,000.

So there you have it, a Guaranteed Retirement Vehicle with an Indexed Annuity. Do a search online and read up on them. Then check with your financial advisor. If you are in Oklahoma, Arkansas, or Texas, contact me and I can put you in touch with an agent that offers what I feel is the best Indexed Annuity on the market!

Also, if you order my Analyze Anything video course you will get more info on these and other Rock Solid income streams that work great for retirement income streams. Get info on this HOT new course now at:

Rock Solid Income Streams

Thursday, December 3, 2009

Your Fed is The Creature From Jekyll Island

This morning (12-3-09) I was glued to the TV and the Senate Banking Committee hearing on the reinstatement of Ben Bernanke. The old boy from Kentucky, senator Bunning, was giving him the work over! Boy, did he let him have it!

Bunning ended his comments with "Your Fed has become the Creature From Jekyll Island". WOW! He also told him that he would do everything in his power to see that ol Ben was not reinstated as Fed Chairman! It was good TV. I wonder if they will even show any of it on the news? I doubt it.

Bunning also asked questions of why the bail out companies were ever allowed to pay such Huge bonuses to their executives. He brought out several other good points and questions which Bernanke never answered. Senator Dodd wouldn't even allow it or make time for it (I don't think Ben wanted to respond to the points anyway).

If you have never read anything about the Creature From Jekyll Island, you should. You can find YouTube video (you may even see some here on this blog) as well as the book online. Just Google it and you should find all kinds of links to it. You will discover some exciting history that often is not covered in the main stream. In fact, the main stream tries to ignore or flat out discredit many of these historical events.

It never ceases to amaze me how much wool the big boys have pulled over most folks eyes. So much so, that if you try to tell people these things, the majority of them will think that you have lost your mind.

Personally I don't think there is much we can do about it. Many investors are wondering what will happen with the Fed.

As index traders we really don't care what they do (we figure it will probably be wrong anyway). We just follow the index wherever it goes for income that they can't take back from us.

That is what index trading can provide for you, an income they can't take away. Good to have this day and age!

It really does not matter what the market (or Fed) does, we can go along for the ride. The question is, will you be with us, or setting on the sidelines waiting for a real solution to the world's problems? (Hint: Don't hold your breath while you're waiting!). The Fed will keep pulling their stunts with the money supply, and as traders we will go along for at least part of the ride. That way, we can cash in no matter what the Creature from Jekyll Island does.

Doug West has worked in Financial Planning and Investment training for over 20 years. Get his No-Cost Audio Report on how you can Secure Your Retirement with Free-Online Tools:

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