Who Do You Trust?

In my everyday routine of meeting with clients there is one constant. They have questions. They have 3 or 4 people that they call their advisers. They have questions. I know I said that already but it is true. We all have to make a living but this is getting ridiculous. I met with a client today and the client showed me a couple of annuity contracts from two different advisers. The annuities were variable in nature. The client is retired and over 60 years old. Why would this client need a variable annuity? The advisers told the client that she could get a guaranteed return of 6% every year. They did not tell the client about all the different things that the client needed to do to get the 6%. Better yet the advisers did not tell the client about the things that could happen to mess up the 6% guarantee. The commission to the advisor is very lucrative. The advisers failed to mention that as well. This client called me and asked me about these contracts. I told her the truth. I also could have recommended these contracts but they are totally in appropriate for the client. The client trusted me because I did not try to sell her something. I educated her. Now those two advisers lost the sale and I gained the trust of the client. Just be careful out here. When you get ready to purchase products be sure that you need the product and get the advisor to educate you about the product first. When you make the decision instead of the advisor just coming up with something they get paid on then you may have a trustworthy advisor and a product that you need.

Change or Get Out!!!

It's all about productivity. There are companies out there that will keep you only if you produce. That is just fine if the companies spend the money on you to help you produce. What is going on? Look, if you get fired from a job because you are not having a good year won't that hurt your next search for a new job. It is just shocking that so many people lose their jobs because the company they work for changes it's tune about how they do business and the employees have to fall in line or get out. It's just wrong. If the company wants to change then the company has to help the employees change. Not give the employees ultimatums. It is a shame but you have to have two or three jobs waiting in the wings just in case your employer finds a new way to make money that may include you getting fired for not producing when the environment prohibits you from doing just that. Eh. I know, that's life. Well who said it has to be like this. I say that every profession needs a union. At least you have some place to complain.

ROTH IRA A Tax Free Arrangement.

A Roth IRA is an individual retirement plan that can provide you with tax free income.  You can put up to $6,000 in these accounts and invest the money in most anything you want.  There are no age limits but there are income limits to be elligible to contribute.  Also you never have to take your money out of this kind of IRA.  you can leve your mney in these for as long as you live.  If you do not have a retirement plan at work try one of these at the bank or your advisor can hook you up.  You will eventually stop working so you are going to need to save.  What beeter place than a ROTH IRA.  Just leave your money in the ROTH for 5 years and keep using it until age 59 1/2 and it is tax freee income from the tax deffered growth you gained in the account over the years.  Tax Free!! I like it.  Any questions?

Market Close!! Auto sales pretty low, mortgages are down. Still we were up today.