MONEY OR INCOME: Which is most important to you?

Jim Lorenzen, CFP®, AIF®

Which goal is most important to you?

–   Never running out of retirement money

–   Never running out of retirement income

–   Both

Sure, you said both.  And, maybe that’s possible!

The problem for many is that not only are substantial assets required to provide a comfortable retirement income – you also have to live a lifestyle below what many would believe you could afford.

I have a client couple who have done just that.  They’ve worked hard, invested responsibly, and lived well within their means allowing them to save at a rate greater than what would appeal to many others.  The result:  They’ve been able to retire in their late ‘50s in a beautiful area  – and doing it at a time their son graduated from college and is now entering grad school.  How many parents could afford to retire with a child entering grad school?   In short, they’re set!  They’ve taken all the right steps to insure their future, even into their 80’s and 90s… and even if everything in “the markets” went south on them.

I’ve also seen others who have amassed ten times that couple’s assets, but are living at a lifestyle that keeps them in perpetual jeopardy.  They’re constantly in danger of running out of money.   Their lives are like a hamster running on the spinning wheel, constantly chasing the cheese.  The lesson:  Even people with $30 million dollars can still be on the edge of disaster.  Think of all the multi-million dollar sports and entertainment figures who’ve ended-up broke, sometimes due to poor management, sometimes due to overspending, sometimes both, virtually always because of ignorance…. either on their part or the part of their ‘managers’, or both.

Choosing the right strategy

What kind of retirement income or wealth management strategy makes sense any given investor?  Naturally, it depends on age, goals, asset level and lifestyle.  It also depends upon what type of strategy the individual is open to considering – most of us have built-in biases based on how we’ve been programmed.

Given the level of financial literacy in America today, it’s a real concern.  Most of what people know about financial instruments they’ve learned from entertainment gurus, their parents, or their friends.  I saw a recent study that revealed more than 31% of Americans didn’t know they could lose money in fixed income investments; and 68%  thought rising interest rates would be good for bonds… all while 60% said they don’t consider themselves knowledgeable regarding fixed income, the market, or economic forces that drive bond pricing.

Generalizations are always dangerous; but hey, you’ve have to start somewhere, right?   So, let’s begin, as a starting point, with this basic admittedly oversimplified outline of what an overall retirement strategy might be:

Retirement Strategy

You might be wondering why those below age 45 aren’t included in my little over-generalized grid.  The answer is simple:  In 25 years’ of practice, only ONCE has someone below age 45 come to my office.  That was almost 20 years ago and I haven’t seen anyone in their 40s come to my office since – they’re still watching Kramer – but, I’ll see them after they turn 50 and finally figured something out they don’t know today.

Back to our grid:

The definitions of “modest” and “substantial” are somewhat squishy.  It’s like trying to define what a ‘middle-market’ company is – you can ask a hundred people and get a hundred different answers.  So, let’s just say the definition is whatever you think it is.

If you’re worried about running out of money, you might consider yourself to be a “constrained investor” – and you probably shouldn’t be trying to ‘make up for lost time’ by making risky bets.

If you’re like the couple who’s sitting pretty and just doesn’t want to blow it, you might be preservation minded – someone who wants to maintain their lifestyle after inflation and taxes and not do anything stupid.   [See my blog post, “Inflation and Stockshere.]

Back to our initial quiz:

Which worries you most:  Running out of money or running out of income?

Long-term plans don’t change just because temporary conditions do.

You can have an income forever; but, it may not be enough to even pay your utility bill if the asset base is too small; and, if you

run out of money, there’s no income.

Navigating it all is much like navigating a ship at sea, surrounded by all sorts of potential hazards.

Too much to cover in a single post, as you might imagine; so, we’ll be covering the issues and strategies you can use in upcoming installments.  I hope you’ll find them helpful.

If you would like help, of course, we can always visit by phone.

Enjoy!

Jim


Jim Lorenzen is a CERTIFIED FINANCIAL PLANNER® professional and An Accredited Investment Fiduciary® serving private clients since 1991.   Jim is Founding Principal of The Independent Financial Group, a  registered investment advisor with clients located across the U.S.. He is also licensed for insurance as an independent agent under California license 0C00742. The Independent Financial Group does not provide legal or tax advice and nothing contained herein should be construed as securities or investment advice, nor an opinion regarding the appropriateness of any investment to the individual reader. The general information provided should not be acted upon without obtaining specific legal, tax, and investment advice from an appropriate licensed professional.

Business Owners Face Potential Tax Law Changes

Jim Lorenzen, CFP®, AIF®

1954

1986

2017

Guess what those years have in common.   If you guessed those were the years of major tax reform, you’d be right—at least about the first two.  2017 is still a question mark.

While tax law changes can occur quite often, major reforms appear to come around about every thirty years.    Business owners, unlike the rest of America, will have to deal with the impact of any changes on both the personal and business front.

Proposed Changes for Business

Under the proposed tax bill, which still faces much debate, the corporate tax rate would be reduced to 20% – a substantial cut.  S-Corps would see their rate drop to  25%.

One of the proposed changes, favored by many business owners,  would allow for the expensing of capital expenditures—no doubt in an  effort to spur growth.   However, there could be a fly in the ointment for many business owners in a provision no one’s talking about.

You’ve heard about the  ‘border tax’.  Under this provision, there would be no cost-of-goods deduction on imported goods—a potential problem for many retailers, as well as manufacturers who outsource some or all of their supply chain.

Many businesses that have spent years researching and developing their supply chains may face some formidable challenges.  There would be a deduction for the cost of goods exported.

Finally, there would be no deduction for business loan interest under the proposed plan.  This may not be a big issue now, given today’s low interest rates; but, it could become a major issue if we should ever experience the double-digit interest rates similar to those of the late 1970s.

Business owners are individuals, too.

As if dealing with all a business owner faces isn’t enough, there’s also the personal side.   There are  some potential changes looming on the horizon there worth knowing about.

Individual tax rates would come down and reduced to three brackets.

The elimination of all itemized deductions except for mortgages and charitable contributions is also popular with many, but not everyone.  The proposed change for charitable deductions limits those deductions to $100,000 for a single payer and $200,000 for a married couple.  It may become difficult for a  charity to convince a multi-millionaire to donate that $1 million work of art !

And, while there’s talk of repealing the estate tax, it doesn’t appear to be a complete repeal.  The government still wants that unrealized appreciation taxed!  The talk is about going to a system similar to what they have in Canada.

The idea would be to tax unrealized appreciation over $5 million at a capital gains rate.  Taxes on gifts would correspond to eliminate people using gifting to avoid the estate tax.

Finally, the newest proposal would also do away with deductions for medical expenses—or at least have a very high threshold.

All these are proposed—not passed.  But, it’s good to be aware

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of what could be on the horizon.

What Should Business Owners Do?

You might discuss these points with your tax advisor—I am not a CPA.  I am a CFP®, AIF®,,,,  EIEIO.

 

Planning Point

If you don’t have an executive bonus plan, you may want to consider starting one and paying the bonus before March 15, 1018.  Same if you do have one.  Your business gets the 2017 deduction while the employee may be paying tax on the bonus received at lower tax rates.   If you’re `grossing up’ the bonus to cover the employee’s  tax payment, that would be under the 2018 rates, as well—remember, talk to your tax advisor.   If you want to learn more about these plans, you can access my special report here.

Planning Point

Don’t neglect what is probably the most versatile financial tool available today:  cash value life insurance—it has tax benefits that no other financial vehicle can provide and is an ideal retirement supplement—especially for high-earning executives and owners who are limited in what they can put away in qualified tax-deferred vehicles.  Quite often, these executives are stunned to find out those limits simply will not allow the account to provide enough capital at retirement for them to preserve their desired lifestyle.

As David McKnight points out in his book, Tax Free Retirement, life insurance is used as a key retirement strategy by more than 85% of Fortune 500 CEOs and many members of Congress.  The book was also endorsed by retirement guru and CPA Ed Slott, as well as David M. Walker, former Comptroller General of the United States.

Sometimes, I will see arguments against this approach in the media – arguments that are little short of idiotic – but, the simple truth is that insurance, including indexed universal life (IUL) in particular, is becoming widely accepted among leading experts in the profession as a true asset class (in addition to cash, stocks, bonds, real estate, and commodities), probably as a result of an aging population with changing priorities and increasing economic uncertainty (where the government’s future need for tax revenue is concerned).

  • Your tax advisor can provide the best insight regarding tax strategy;
  • your estate planning attorney can help you make sure your documents are updated and in order; and
  • your financial advisor should be able to help you arrange assets to fit your needs.

Never use a podiatrist for dental advice.

I hope you found this helpful.

If you would like help, of course, we can always visit by phone.

Enjoy!

Jim


Jim Lorenzen is a CERTIFIED FINANCIAL PLANNER® professional and An Accredited Investment Fiduciary® serving private clients since 1991.   Jim is Founding Principal of The Independent Financial Group, a  registered investment advisor with clients located across the U.S.. He is also licensed for insurance as an independent agent under California license 0C00742. The Independent Financial Group does not provide legal or tax advice and nothing contained herein should be construed as securities or investment advice, nor an opinion regarding the appropriateness of any investment to the individual reader. The general information provided should not be acted upon without obtaining specific legal, tax, and investment advice from an appropriate licensed professional.

Retirement Income for Life!

Jim Lorenzen, CFP®, AIF®

Would you like a lifetime retirement income?  There’s a tv commercial sponsored by a mutual fund/insurance complex that asks the question, “Do you know your number?

While it’s a good question, it doesn’t go far enough.  The real question should be, “Do you know your income?”

When you consider that we’re living longer today – that most people need to plan for two lives over 30+ years in retirement – the old adage, ‘don’t touch the principal, just live off the interest’ doesn’t really work.  Just ask anyone who retired in the early-mid 1970’s and saw double-dip inflation even as interest rates were going down, reducing their income each year.

The issue can be framed like this:

Market risk + legislative risk + inflation risk + longevity risk = ???????

Legislative risk?  Our nation’s debt is around $20 trillion as I write this – and that’s the ‘official’ debt…. really only the current year’s outlay on the total.  You can see the current debt here.  Looking out over more than three decades of retirement, knowing the government will need more and more revenue to fund all the promises (they do want to get re-elected, you know), what do YOU think taxes will do?
The Three Big Risks to RetirementThe real question that should be asked is: “What’s my income?”  That’s what retirement security is really all about.

Those at or nearing retirement are well aware of the Three Big Risks that lurk ahead at a time they will likely need their money to last for two lives and maybe three full decades or longer.

If you are a true risk-adverse investor seeking a lifetime retirement income and you’d like to learn more, I invite you to invest twenty minutes to learn how you can transform your life savings into a lifetime of inflation-adjusted income.

If you woretirement income planninguld like to view this educational video, grab a cup of coffee – it’s about 20-minutes long – and you’ll learn about a process for arranging assets that may be eye-opening,  you can do so by clicking here.
Your Roadmap?

This educational video depicts an eye-opening strategy.  The specific financial tools used to implement this strategy will be different for each individual, depending on specific needs and desires; but, it is a strategy that could put retirement on ‘auto-pilot’.

If you would like help, of course, we can always visit by phone.

Enjoy!

Jim


Jim Lorenzen is a CERTIFIED FINANCIAL PLANNER® professional and An Accredited Investment Fiduciary® serving private clients since 1991.   Jim is Founding Principal of The Independent Financial Group, a  registered investment advisor with clients located across the U.S.. He is also licensed for insurance as an independent agent under California license 0C00742. The Independent Financial Group does not provide legal or tax advice and nothing contained herein should be construed as securities or investment advice, nor an opinion regarding the appropriateness of any investment to the individual reader. The general information provided should not be acted upon without obtaining specific legal, tax, and investment advice from an appropriate licensed professional.

There’s More than One Path to Retirement Security

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Jim Lorenzen, CFP®, AIF®

People often think investment strategies for retirement security involve a either/or choices, i.e, risky stocks or savings as a zero-sum choice, or active vs. passive investing as an either/or choice; Believe it or not, there’s more than one path to retirement security.  Sometimes (often) they can be blended.

Active vs. Passive

Vanguard on active vs. passive investingFor example, low-cost passive investments are attractive simply because it’s widely believed that active managers can’t beat their relevant indexes’ average return on a consistent basis.

That’s probably true, however the argument often ignores the downside protection active management can offer – something index investing doesn’t provide, and something important to investors for retirement security.

Does that mean there’s only one path to financial security… that active is better?  No – it’s just different.  Sometimes, the extra fee an active manager charges can be worth far more than the alternative downside exposure.   Vanguard has created a client education piece about active and index investing that you might find helpful.  You can download it here.

Active Institutional Management

Investors with smaller accounts often achieve diversification by investing in mutual funds.  While these investors can benefit from the diversification they offer, those with larger accounts can be penalized.  The reason is simple:  Mutual fund costs don’t scale.

For example, if you have $50,000 invested in a mutual fund that carries a 1.25% expense ratio (just to pick a number), you’re paying $625 a year in annual expenses.  Not too bad.  But, suppose your investment is $500,000 and you have a basket of mutual funds and all charge about the same 1.25%.  Your annual expenses would now total $6,250 per year.

Fund expenses don’t go down as the asset level increases.  1.25%, in our example, would stay 1.25%, regardless of how much your account increases in value.  And, those aren’t the only expenses!  You can learn about the other hidden expenses in another report, Understanding Mutual Funds, which you can also download instantly, right here.

Institutional money managers – at least all those I use – have fully disclosed fees; but, furthermore, their fee percentage actually declines as the investor’s asset level grows.  They can also provide tax-managed benefits not available in mutual funds.

Institutional managers seem to do far better than the individual investor.  As you can see from this independent Dalbar study, individual investors didn’t even come close- and the time period for the study included the famous ‘meltdown’ of 2008.

Institutional investors tend to outperform individual investors.

Screening for investment managersThe selection process for institutional managers, of course, is important, if not critical.

If you’d like to see the process I have been using here at IFG, you can get it here.

Of course, it’s not an either/or proposition:  Blending active institutional management with passive indexes can be quite effective.

It begins with a philosophy.

The key to successDo you know your investment philosophy? By the way, “I don’t want to lose money” is not a philosophy; it’s a wish.  A philosophy goes deeper – it’s the roadmap that helps you as you go through the investment/manager selection process.  IFG’s can be accessed immediately here.

Managing the Downside.

There’s a tv commercial sponsored by a mutual fund/insurance complex that asks the question, “Do you know your number?

While it’s a good question, it doesn’t go far enough.  The real question may not be how much you have, but how long it will last!   After all, that’s the key to almost everyone’s definition of retirement security.

Longevity risk – “Will I run out of money?”

This is the key issue for most Americans; even those with $1,000,000+ who want to maintain their standard of living, let alone the vast majority of Americans who have less.

The Three Big Risks to RetirementThe real question that should be asked is: “What’s my income?”  That’s what retirement security is really all about.

Those at or nearing retirement are well aware of the Three Big Risks that lurk ahead at a time they will likely need their money to last for two lives and maybe three full decades or longer.

If you are a true risk-adverse investor and you’d like to learn more, I invite you to invest twenty minutes to learn how you can transform your life savings into a lifetime of inflation-adjusted income.

If you would like to view this video, you’ll learn about a process for arranging assets that may be eye-opening,  you can do so by clicking this tab.
“Income for Life Model”
Your Roadmap?

What’s right for you is likely no one strategy, but a blend of this – and other strategies not even covered here – that best fits your particular needs and desires.

If you would like help, of course, we can always visit by phone.

Enjoy!

Jim


Jim Lorenzen is a CERTIFIED FINANCIAL PLANNER® professional and An Accredited Investment Fiduciary® serving private clients since 1991.   Jim is Founding Principal of The Independent Financial Group, a  registered investment advisor with clients located across the U.S.. He is also licensed for insurance as an independent agent under California license 0C00742. The Independent Financial Group does not provide legal or tax advice and nothing contained herein should be construed as securities or investment advice, nor an opinion regarding the appropriateness of any investment to the individual reader. The general information provided should not be acted upon without obtaining specific legal, tax, and investment advice from an appropriate licensed professional.

Think You’re Diversifying Investments? Not Really.

Jim Lorenzen, CFP®, AIF®

Investment diversification, reducing investment risk, may be one of the most misunderstood of investment principles.  I’ve seen tv stock gurus tell you that owning three stocks in different industries passes for investment diversification, implying that risk is being reduced.  I don’t think so; it’s just compounding investment concentration.

Believe it or not, you can’t possibly diversify-away market risk.  Think about it; you could own every single stock contained in the S&P 500 Index and all you would have done is duplicate the market’s risk.

I’ve also seen investors buy multiple mutual funds in an attempt to diversify; but, since everything they bought had to be “quality”, all they did was duplicate their holdings (portfolio A) instead of diversifying them (portfolio B) across multiple investment styles (growth/value, large/small, etc.).

Diversification, done properly, can smooth things out, as this simple example shows.

But, what stocks?  Which bonds?  Is buying a few enough?   The answer, of course, is “it depends”; but, it’s worth noting that there are five basic asset classes (stocks, bonds, real estate, commodities, and cash) and within each there are multiple sectors.  It’s also virtually impossible to know which will outperform all others in any given year.  Yet, diversification among them can smooth the ride!

I’ve been telling clients for more than two decades now, “We’re not diversifying money.  We’re diversifying risk; we just do it with money.”

So, how do we diversify risk?  It’s all about something called correlation.

You can think of correlation as pistons in an engine:  They all go up and down, but not necessarily at the same time.  Their going up and down is what propels the machine, but you wouldn’t want your money on any one piston.  If the engine were to stop, you’d have a 50/50 chance of being up or down!  But, if your money was spread over all the cylinders, you’d still have a stable overall value regardless of when the engine shut down.

It doesn’t really work all that clearly in the real world of investing, of course; but the theory is no less valid.  Here’s a chart the relative correlations among a number of classes and styles.

 

 

 

 

 

Correlations don’t remain the same, even from day-to-day; so, they’re not in stone – they just give us a historical look at their relative movements, but the numbers will be different depending on the time-frames chosen.

Diversification is all about correlation reduction in portfolios.  I created a report on all this a while back called Understanding the Diversification Puzzle.   You might find it helpful and you can get it here.

Enjoy!

Jim


Jim Lorenzen is a CERTIFIED FINANCIAL PLANNER® professional and An Accredited Investment Fiduciary® serving private clients since 1991.   Jim is Founding Principal of The Independent Financial Group, a  registered investment advisor with clients located across the U.S.. He is also licensed for insurance as an independent agent under California license 0C00742. The Independent Financial Group does not provide legal or tax advice and nothing contained herein should be construed as securities or investment advice, nor an opinion regarding the appropriateness of any investment to the individual reader. The general information provided should not be acted upon without obtaining specific legal, tax, and investment advice from an appropriate licensed professional.

SBA Small Business Week Begins April 30th

Jim Lorenzen, CFP®, AIF®

Small business webinars will be available the week of April 30th to help celebrate Small Business Week.

SBA Secretary Linda McMahon announced this on the SBA website:

The countdown to National Small Business Week (NSBW) is on!   NSBW (April 30th – May 6th) is an annual event hosted by the U.S. Small Business Administration to recognize the nation’s top small businesses, entrepreneurs, small business advocates and champions, and will feature a series of small business webinars.

These small business webinars cover a wide variety of topics:

The U.S. Economic Outlook and Its Impact on Small Businesses

Presented by Visa
May 2, 2017 | 2:00-3:00 pm ET
Register here

5 Fabulous Habits of Local Business Champions

Presented by YP
May 3, 2017 | 2:00-3:00 pm ET
Register here

Grow Your Business Online
Presented by Google
May 3, 2017
4:00-5:00 pm ET

Register here

The Future of Small Business Innovation
Presented by Salesforce
May 4, 2017
2:30-3:30 pm ET

Register here

How to Write Your Email Content in 15 Minutes or Less

Presented by Constant Contact
May 4, 2017 | 3:30-4:30 pm ET
Register here

Find the Hidden Money in America

Presented by Chase
May 4, 2017 | 5:00-6:00 pm ET
Register here

 

IFG has also created a report, “How to Establish Business Value” – information that can be useful for evaluating the impact of major purchases on business value going forward.  You can get it here.

Enjoy!

Jim


Jim Lorenzen is a CERTIFIED FINANCIAL PLANNER® professional and An Accredited Investment Fiduciary® serving private clients since 1991.   Jim is Founding Principal of The Independent Financial Group, a  registered investment advisor with clients located across the U.S.. He is also licensed for insurance as an independent agent under California license 0C00742. The Independent Financial Group does not provide legal or tax advice and nothing contained herein should be construed as securities or investment advice, nor an opinion regarding the appropriateness of any investment to the individual reader. The general information provided should not be acted upon without obtaining specific legal, tax, and investment advice from an appropriate licensed professional.

Inflation, Stocks, and Computing Investment Returns

Jim Lorenzen, CFP®, AIF®

People are often either surprised to hear that stocks are probably the best inflation hedge they’ll ever find – or they really don’t understand why.

Those who intuitively believe it believe it’s simply because stock prices tend to rise over time; but, so do prices for other things, generally, including real estate.  After all, as a long-term hedge, most real estate is a good inflation hedge, as well.  It’s only real drawback, most believe, is the lack of liquidity it entails.

When my parents retired, the common practice was to simply “ladder” bond or CD maturities as many counted on rising interest rates to offset inflation.   While inflation had averaged only 2% in te 1950s and 2.3% in the 1960s, all of a sudden climbed to 6.2% in 1973 and by 1974 had reaced 11%.  Bonds, of course, paid higher rates to the holders, but after taxes, the income didn’t keep up with inflation.

From 1973 to 1982, inflation averaged 8.7%!  A little math reveals that the purchasing power of bond income had declined 57% in just one decade; and, as many found out, they were living longer, too!

Enter the 1980s and a newfound interest in stocks, which continued into the 1990s and even into the 2000s.  But why?

The reason lies in a simple, basic premise:   stocks represent shares of ownership in businesses – businesses that sell goods and services in the marketplace.  When you eat breakfast, everything you eat or drink was grown, packaged, distributed, and sold by a business.  Everything we consume was sold by a business.  The largest providers, distributors, and sellers are publicly held – the ownership shares are owned by people like you and me – and often in their 401(k) plans through their ownership of mutual fund shares, which are shares of ownership in investment companies which, in turn, buy shares in publicly held companies.

So, if prices go up, stocks go up.  Is it that simple?   Actually, there’s more to it.

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Take an (admittedly oversimplified) example of a company that generates $1 million in sales and $800,000 in expenses.  Let’s assume the remaining $200,000 is paid out in dividends.

If inflation causes prices to double, sales rise to $2 million and expenses rise to $1.6 million, now creating $400,000 in dividends.  Dividends have doubled, despite the fact that all margins have remained the same.  That’s how stocks become an inflation hedge, with liquidity.

This is exactly what happened throughout the 1980s.  The decade began with the S&P paying out around $7 in dividends, when the index paid out a 5.3% yield as it stood at $133.  By 1990 it was paying out around $12.50 when the index was up to $340, for a 3.7% yield.   As the yield went down, stock prices went up; yet, the investor saw cash flows rise from $7 to $12.50!   This actually did better than inflation, which averaged 4.7% – up 58%.

Of course, dividends are not guaranteed and stocks have both business and market risk – a good reason why people relied on “blue-chip” stocks and a sound asset allocation process.

It’s also important to understand investment returns, including their measures (there’s more than one) and why most individual investors typically don’t do as well as institutional investors.  If you’d like to learn more about this topic, you might want to see our report, which you can access here.

Enjoy!

Jim


Jim Lorenzen is a CERTIFIED FINANCIAL PLANNER® professional and An Accredited Investment Fiduciary® serving private clients since 1991.   Jim is Founding Principal of The Independent Financial Group, a  registered investment advisor with clients located across the U.S.. He is also licensed for insurance as an independent agent under California license 0C00742. The Independent Financial Group does not provide legal or tax advice and nothing contained herein should be construed as securities or investment advice, nor an opinion regarding the appropriateness of any investment to the individual reader. The general information provided should not be acted upon without obtaining specific legal, tax, and investment advice from an appropriate licensed professional.

A Slick 2017 Market Outlook Infographic!

Jim Lorenzen, CFP®, AIF®

Jim Lorenzen, CFP®, AIF®

Here’s an interesting market outlook infographic from Vanguard!  Thought you might enjoy seeing it!

Just click on the image; you can enlarge it.

The White Paper referenced was written at the end of last year, but you may still find it interesting.  You can get it here.

Enjoy!

Jim


Jim Lorenzen is a CERTIFIED FINANCIAL PLANNER® professional and An Accredited Investment Fiduciary® serving private clients since 1991.   Jim is Founding Principal of The Independent Financial Group, a  registered investment advisor with clients located across the U.S.. He is also licensed for insurance as an independent agent under California license 0C00742. The Independent Financial Group does not provide legal or tax advice and nothing contained herein should be construed as securities or investment advice, nor an opinion regarding the appropriateness of any investment to the individual reader. The general information provided should not be acted upon without obtaining specific legal, tax, and investment advice from an appropriate licensed professional.

Someone else likes your key employee – Your competition!

 

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Jim Lorenzen, CFP®, AIF®

Successful business owners know they’re successful because of their people.  Within that group there’s usually one or two key people that either seem to make everything run well or, without their presence, the business would suffer a significant loss of revenue.   Sometimes they have special vendor or banking relationships, which means the banker’s terms may not be as good if those key people left, until the business could ‘prove itself’ again.

You value your key people.  So do your competitors.

How does the small business owner compete with competitors who can offer hefty benefit packages – or keep key employee(s) from striking out on their own?

This report shows one easy way small business can compete!  You can access it here.

Hope you find it helpful.

Enjoy,

Jim


Jim Lorenzen is a CERTIFIED FINANCIAL PLANNER® professional and An Accredited Investment Fiduciary® serving private clients since 1991.   Jim is Founding Principal of The Independent Financial Group, a  registered investment advisor with clients located across the U.S.. He is also licensed for insurance as an independent agent under California license 0C00742. The Independent Financial Group does not provide legal or tax advice and nothing contained herein should be construed as securities or investment advice, nor an opinion regarding the appropriateness of any investment to the individual reader. The general information provided should not be acted upon without obtaining specific legal, tax, and investment advice from an appropriate licensed professional.

Should You Buy Term Insurance and Invest the Difference?

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Jim Lorenzen, CFP®, AIF®

 

I first heard this mantra in the 1970s.  It resurfaced again in the ’80s and again in the 90s.  Funny thing is it’s only the guru’s selling CDs and DVDs – people who are neither registered, regulated, or even have a single client – who keep promoting it.

Nevertheless, it does sound good!  Would it work.   I thought you might like to see an independent analysis that even gives term insurance a head start!  What if you could buy $500,000 of term insurance for only $1 a year!   Silly, I know, but, the analytics are interesting – and worth understanding.

I think you’ll find it interesting.  You can access it here.

Enjoy!

Jim


Jim Lorenzen is a CERTIFIED FINANCIAL PLANNER® professional and An Accredited Investment Fiduciary® serving private clients since 1991.   Jim is Founding Principal of The Independent Financial Group, a  registered investment advisor with clients located across the U.S.. He is also licensed for insurance as an independent agent under California license 0C00742. The Independent Financial Group does not provide legal or tax advice and nothing contained herein should be construed as securities or investment advice, nor an opinion regarding the appropriateness of any investment to the individual reader. The general information provided should not be acted upon without obtaining specific legal, tax, and investment advice from an appropriate licensed professional.