 The financial markets have been rather chaotic recently, due to troubles caused primarily by subprime mortgage-backed securities. Although the economy is showing signs of recovery, the vast majority of Americans are still worried as they look at their delayed or destroyed retirements. And as usual, traditional financial advisors are pitching the old line: “Don’t panic – just focus on the long term and you’ll be fine.” In spite of such prosaic advice, the investors we talk to have never felt more confused, isolated, and completely powerless.
Laser Financial Group is dedicated to providing clear answers based on facts and practical application. Our goal is to offer our investors a sense of direction, confidence, and capability on their journey to financial independence. We believe it is better to be motivated by quality of life, rather than by crisis management. Recessions are bound to occur, yet, as we all know by now, the so-called experts had no clue this big one was coming or that the stock market would crash in September 2008. This is the very reason we teach and help our clients implement a proven, common-sense investment strategy that ensures that their portfolios are never directly impacted by the stock market’s turmoil.
 In our opinion, the only thing one can predict about the stock market with certainty is that it will fluctuate – period! All other predictions are speculative and illusionary. We therefore advise our clients to pursue investments only if they posses these four qualities: Liquidity, Safety, Decent Return, Tax Advantage.
1. Liquidity. You are able to readily access your money whenever you want to, without paying hefty penalties.
2. Safety. Is your investment guaranteed or insured? Does the investment lose value when the stock market plunges?
3. Decent Returns. Isn’t that why you invested in the first place?
4. Tax Advantage. Although the majority of financial professionals completely ignore this critical piece, lateral wealth does not matter much at the end of the day. What is really important is how much you get to spend after paying taxes. Your return and your ultimate spendable funds will be enhanced if the investment enjoys a tax advantage.
Typical Investing Dilemmas
Numerous investments promise a high return, but most of them also expose investors to high risks – making them very unsafe. Several are not liquid enough, making it almost impossible for investors to access their funds in a timely manner without typically being hit with huge penalties. Most of the safe investments offer too poor a rate of return to outpace the cost of living.
The vast majority of investors are heavily invested in qualified plans like 401(k)s and IRAs. These plans usually fail our test because one cannot readily access the funds without having to borrow and repay the money on a set schedule, or pay income taxes and penalties if younger than age 59˝ (with some exceptions). Given that almost all of the funds in such accounts are invested directly in the stock market, safety is completely compromised – 2008 being a significant case in point.
A Better Alternative
We recommend to our clients accumulation options that enable them to access their funds, tax-free (including the gains), before age 59 ˝, without any IRS penalties, and without the obligation to repay. Most importantly, their money is accumulated in an environment where their account values do not decrease when the stock market loses, yet they gain – with a cap – when the market performs well. Money taken from such accounts does not incur taxation on Social Security benefits. And in the event of death, their named heirs will receive the remaining funds, income-tax free.
You are likely wondering why you have never been aware of these alternatives. We all have the exact same game board, but some choose to use theirs to play checkers, while a handful are playing chess. You can join the growing group of smart investors who are keeping their assets where they belong – in YOUR control – by calling (301) 949-4449 or visiting www.LaserFG.com to schedule your no-obligation consultation today!
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