Cash Flow

                There are people that get into financial trouble due to outside circumstances. Medical emergencies, loss of job or a family crisis are some reasons. The majority of financial trouble stems from simple over spending.

Spenders who need outside help may benefit from the support of a more frugal friend who would be willing to act as a money mentor or spending coach. If you recommend to a friend Debtors Anonymous, don’t be surprised to hear a quick “no.”

Some people are too ashamed to admit that they may be damaged in this way. You may have to think of other solutions, such as a financial recovery counselor. (Karen McCall and her associates at www.financialrecovery.com and Bari Tessler’s group at www.consciousbookkeeping.com are two valuable resources.)

Two more tips: Once you’ve developed guidelines for an overspending friend, or yourself, take care not to call it a budget – a word that free-living boomers mentally translate as “ball and chain.” Refer to it instead as a spending plan, or a spending, saving, and investing plan, or even a financial growth plan.

Those of you who may be in denial about this I ask you to describe three scenarios: (1) what happens if all your dreams come true; (2) what happens if outcomes are just so-so; and (3) what happens if you have made mistakes that force you to change your lifestyle. What will your life be like? How will you feel? What will your friends and relatives say about you?

I suspect that when you reach scenario # 3 the last question may unleash shame, regret and many pent up feelings. Find out the reasons for overspending. Just like people who over eat, over indulge in alcohol or drugs the actions are symptoms of inner turmoil.

Sprinting to the Finish Line

            Life is like a marathon race. Many ups and downs. Pain from each step we take, yet, euphoria as we pass each marker. As you run and try to reach your goals for this year… why not sprint???

                I find reading books helps one reach insights. Doug Andrew, author of many best selling books can help you “sprint” to financial independence. I am a trained advisor on Doug’s team and suggest a basic book from his collection…..

________THE______________________________________________

LAST CHANCE MILLIONAIRE

IT’S NOT TOO LATE TO BECOME WEALTHY by Douglas R. Andrew

ü        PRE – PAY YOUR MORTGAGE

ü        SOCK AWAY AS MUCH MONEY AS YOU CAN IN YOUR 401K!

ü        DIVERSIFY YOUR PORTFOLIO!

THAT’S THE GUARANTEED WAY TO A SAFE AND SECURE RETIREMENT!

BUT IS IT?

For the millions of Baby Boomers facing retirement, here is a brilliant – and refreshing contrarian – guide to accumulating wealth and security regardless of age, income, or current assets.

According to Doug Andrew, the bestselling author of MISSED FORTUNE 101, too many Americans are being led down the wrong financial path. Even worse, many Baby Boomers find themselves panicking – fearful that they’ve already fallen too far behind to ever catch up.

In this indispensable and eye-opening guide, Andrew provides fresh new pathways to reaching financial security – pathways that all Americans need to consider now. Centering on his Three Miracles of Wealth Accumulation: the Miracle of Compound Interest, the Miracle of Tax-Favored Accumulation, and the Miracle of Positive, Safe Leverage, Andrew explodes many of the commonly-held myths about 401ks, pensions, paying down one’s mortgage, and other forms of retirement planning. Along the way, Andrew offers unique strategies that will not only increase your wealth, but also help readers enjoy their best years while securing their future.

§          Douglas R. Andrew’s first hardcover, Missed Fortune 101 (0-446-57657-3), was published by Warner Business Books in 2005 and has sold in excess of 500,000 copies.

§          With an estimated 83 million Baby Boomers approaching retirement, books that focus on financial security are perennial bestsellers, as demonstrated by the blockbuster success of the #1 New York Times bestselling Rich Dad series by Robert T. Kiyosaki.

§          Americans are perpetually striving to join the millionaire’s club, as evidenced by the continuing success of The Millionaire Next Door (Longstreet Press, 1996), which has sold more than two million combines copies.

Doug Andrew’s initial books Missed Fortune, Missed Fortune 101 and Millionaire by Thirty are other ones you need to read.

If you want more information email me at founders@foundersgroup.net or call 713-871-5919.

Your Plan B Business

Everyone should have a sideline business. It should be started while you are working, not after you lose your job or quit.

                A full time business start up usually takes 5 years to reach breakeven. Obviously,  starting a side business part time may take longer than 5 years to get into the black.

                Why should you set up a side business? It provides a safety net for you and your family. It can provide additional monies to fund your retirement. Finally, it can provide an avenue of exit if you “hate” your J.O.B.

                There are numerous tax benefits in owning your own business. One major benefit is to set up your own small business 401K plan.

                Small-business 401(k) plans might provide the opportunity you need. These plans are also known as Solo 401(k), Solo(k), and Individual K. These investment vehicles are mostly used by small-business owners and entrepreneurs. Small-business 401(k) plans are perfectly designed to accommodate rollovers from employer-managed 401(k) plans, and they can be opened with the intent of funding them solely with future annual contributions (though that is rarely done).

                The advantages of a small-business 401(k) are significant. They offer greater control of funds than does an employer-managed 401(k) or a SEP-IRA. They offer higher contribution limits than Roth accounts ($15,500 plus $5,000 for age 50 and over). And they are easy to manage and administer.

                These plans offer you a broader range of investments to choose from instead of the limited number of options found in traditional plans.

                Here is a general overview of the most widely used categories.

Alternative Investments in a Small-Business 401(k)

Small-business 401(k) plans can invest in the following assets, though the most common investments are real estate-related. Investments can include income-producing assets through the use of non-recourse loans. Unlike a self-directed IRA, a small-business 401(K) is not subject to Unrelated Debt Financed Income Tax on income-producing property.

·          Start a business or buy a franchise

·          Buy part of a business

·          Buy a partnership interest or form limited partnerships

·          Fund limited liability companies or corporations

·          Purchase startup company stock or member shares

·          Private placements (private company stock investment or loans)

·          Private party mortgages and notes backed by real estate

·          Purchase residential rental properties, multi-unit buildings, commercial property, storage facilities, boat slips, marinas, and parking spaces

·          Bare land parcels, lots, acreage, timberland, RV parks, mobile home parks, and other income-producing land

·          Tenants in common for real estate investments

·          Tax lien certificates

·          Tax deeds

·          Lease options

·          Royalty rights

·          Franchise rights

·          Commodities and futures

·          Commercial paper

·          Equipment leases

·          Joint ventures

·          Stocks, bonds, mutual funds, CDs

·          Prohibited: Collectibles

Page 1

| Home | About Us | Services | Portfolio | Contact Us |