Alba Insurance, LLC

Today’s topic: Skepticism.
In the world I grew up in, deals were done with a handshake; your word was your bond. The Bernie Madoffs of the world have made that world look like a fantasy, especially when it comes to investments. There is understandably room for skepticism. The phrase “If it sounds too good to be true, it probably is” has become all too familiar to us. While this can be a healthy approach to doing business, it can also become a stumbling block, for you can not paint all offers with the same brush.
I remember in my younger years, offering cable services, with all the major providers, HBO, Showtime, Cinemax, and others, for three months, all for only ten dollars, period. No contract, no additional fees, nothing else, just ten dollars. The most common response was “What’s the catch?” Most could not believe that the cost of advertising was higher than what would cost the networks to give their services for three months. The offer was in the hope that after three months, folks would continue on their own, to want to keep the service, at the regular price. Because it sounded too good to be true, most of the proposed offers were rejected. Those who took up the offer, benefitted from the cable service, for three months, without further commitment. Those with a high level of skepticism, lost out. There are countless examples of such timidity costing great losses. One of them is of a meeting that was held to suggest the start of a company. Five folks were invited, only two showed up, the other three considered it “too good to be true”. That was the initial meeting of what turned into Facebook. Those initial two are now billionaires, along with other founders.
In today’s insurance world, the push for 401Ks, combined with the Suze Ormans and Dave Ramseys of the world have convinced most that term insurance is the only way to go; that any other form of life insurance is too good to be true, therefore…; that a term policy plus an investment into a Wall Street product is all you need for a safe, comfortable retirement. Anyone offering anything but this option is viewed with a high degree of skepticism. Sticking to this belief keeps them from enjoying the advantages of living benefits, of tax free withdrawals, of lifetime income, of safe growth on their accumulation, of low fees associated with the product and of many other favorable features of an Index Universal Life insurance policy. It may sound too good to be true, yet, these plans have withstood the test of the market crashes since 2001. They have provided safety with growth, since their inception. With these plans, you do not have to die to benefit from the policy; you do not have to throw away thousands of dollars paid into a term policy over the years; you do not have to risk losing your hard earned money on the market crash; you do not have to pay more in taxes than needed.
A healthy dose of skepticism can keep you out of trouble, while rejecting an idea simply because you have not heard of it before, or because it sounds too good to be true, without studying it thoroughly, can leave you in the poor house. Look into the possibilities an Index Universal Life insurance policy can offer you. Call, text or email your request today for your FREE e-book that details this and other ideas on how to avoid losses on your retirement plan and grow your money, safely. Call, text or email your request today to learn ways to retire with dignity. Request your FREE e-book today, here: [email protected].

Today’s Topic: 401(K) Fees
Do you know why you have a 401(K)? I dare say, the only reason you, and most Americans have such a plan for retirement, is because it is the only one your employer presented you with. As good as it was presented to you, the plan comes with risks—huge risks. Some are more obvious than others. For example, we have seen the market take a tumble over the last few days. The ups and downs of the market are so common, we take them for granted, even expect them as part of our “investment strategy.” Aside from the risk of a big market meltdown at an untimely stage in your life, most folks overlook a few things relating to such strategy. There are a few. Today I will address the fees associated with a 401(K) plan.
Most 401(K) holders are aware of one—12b-1 fees (which goes to pay for any marketing materials, brochures, flyers and such). The vast majority could not begin to tell you all the fees they are paying. These include: Administrative fees, Investment fees, Asset fees, Revenue Sharing fees, Audit fees, Fiduciary fees, Consulting fees, Individual Service fees, Sales Charges fees, TPA (Third Party Administrator) fees, Management fees, Shareholder Service fees, Legal fees, Accounting fees, Transfer Agent fees, Plan Set-up fees, Portfolio Management fees, Record Keeping fees, Employee Enrolment fees, Customer Service fees, Loan fees, among others. You may feel better using mutual funds for your plan. In that case, in addition to the above named fees, you can also incur: Broker Commission fees, Sales Loads fees, Redemption fees, Exchange fees, Account fees, Purchase fees, Maintenance fees, etc. If you do not believe me, check your prospectus. They are all listed on there. Naturally, not all the fees apply to all cases at all times. Yet, the exposure is there and can be applied, as the case merits. According to many financial analysts, the common investor is paying an average of 3% in total fees. Before you write off this fee as a pittance, let me remind you what the percentage refers to. That is 3% of your entire money, year after year. So, as your money grows, so does the amount paid. The percentage does not change, the amount does. For example, if in the first year, your total asset is $10,000, your fees would average, based on this statistic, $300 for that year. Let’s say in the course of five years, your money grows from $10,000, to $18,000 the following year, to $25,000 the next, to $32,000 after that and $40,000 the fifth year. 3% each year on fees ($300, + $540, + $750, + $960, + $1,200), total $3,750 in five years. In that period, you went from paying $300 to $1,200, in fees. In essence, by that fifth year, instead of having $40,000 in your nest egg, you ended up with $36,25000 ($40,000 minus $3,750 in fees). Subsequently, as your money grows, more and more is paid on fees, year after year. Twenty years of this and your fees will eat up a large chunk of your growth. Are you certain that’s the approach you want to take with your retirement money?
There are plans available that allow you to take advantage of the growth of the market, with NO LOSS to your principal, so you have all the gains without the losses; some plans have NO FEES, while others have a 1% charge of your MONTHLY PAYMENT. That means your fees do not increase as your nest egg grows. In other words, if you are contributing $10,000 a year to your plan, your fees would total $100 a year, year after year, regardless of how large your nest egg grows. Some plans even offer tax free income, once you retire and that’s income for as long as you live. Discover this and many other strategies as alternatives to the typical 401(K). For a FREE consultation, with no obligation, no bait and switch, no strings attached, contact [email protected]. Start building your financial future on a solid foundation.