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When I worked way back when as an estate planner, it was interesting to see the products wealthier people had access to.

Even I couldnt come up with the minimums required for some of the very same products I was marketing at times.

This is not advice in particular, as everyones financial situation and desires vary wildly. Im just contributing some things I came across worthy of thought.

I saw some postings of an 'investment' via some attorney which could pay 3% or so per MONTH. I have a sneaky suspicion its one of those HYIP programs (hi yield investment program) which involves a private contract and not much else. Be careful, there is no need to go into such Maddoff type programs to make decent money. Ask for long term referrals and you'll see how they back-peddle saying is a "invitation only, secret investment" BS. BEWARE

Since starting in 2011, mr obama has returned the famous 'death-taxes' you need to consider how to structure your estate as well as your investments for worse-case scenarios. Dont set your legacy to get later 'bullet-ridden" due to bad planning. Look into Q-tip, ABC and living trusts as well. IF set up properly, you can DOUBLE the amount of estate tax exemption from the start. Both husband and wife can have their exemptions (I think its around 1 million each) be lumped together with the right trust..

I was also reading people putting down Whole Life insurance. Be careful, you dont know what its really all about. Life insurance, in an estate settement especially is particularly effective to pay these new estate taxes (as high as 55%) for inheritors since the proceeds are very fast and very liquid and particularly TAX FREE. If you dont leave adequate amounts of cash for these unforseen expenses, your progeny may have to sell your assets in fire-sale prices to pay for these taxes. Also, term life keeps going up with age, and whole life was designed in one respect to deal with the increase of life insurance costs. Supposedly, the internal growth of the policy would then cover the cost of rising insurance to make it a more longer term life product for the individual. I also remember when A L Williams made it a business to get people to cash out of their whole life policies to promote 'buy term and invest the rest'.... guess what happened? the majority of people bought term and SPENT the rest. So after a few years, they had to drop their term life due to rising costs and ended up with nothing at the end. Term by itself is a good product DEPENDING what you intend to do with it. Usually, its a good product to cover your liabilities and income temporarily WHILE you build up your estate. (term life only pays 3% of all the ins. written) Then when your estate is worth millions, your need for certain types of life insurance diminishes since you have enough in your own estate.

Another product of interest, are annuities which have an annuitization option. Annuitization is an option you can excercise that lets you convert a lump sum amount into a guaranteed income. Even a combination of an IMMEDIATE annuity, which you can buy that guarantees an amount of income for LIFE... some with a clause that pays you REGARDLESS of how long you live, and this income is NOT accessible by lawsuits, garnishments, etc. Annuities can be a good base for a low-risk product, which offer tax-deffered growth (as opposed to bank CDs) and tend to have a better rate of return as well.

We used them a lot to structure the base for many estates, due to their great tax deferred growth, and annuitization features, as well as access to moneys without penalties in case of medical emergencies.

Warrent Buffett also invested heavily one time into life settlement products. It caught my interest, as it was another investment vehicle which offered consistent say 16% returns yearly with no risk of market, war, or oil effects. BUT I would only consider going with one of the companies who is PUBLICLY listed and has at least a 10 year record that you can look at so there is some accountability. A good option to DIVERSIFY your portofolio since so much is market-sensitive.

You might want to also look at Texas tax certificates which I believe pay 15%, one of the highest in the nation, and if you want a small percentage in hi risk- hi return there are some registered institutions which are getting as much as 40-60% returns in the high frequency trading arena but of course require higher minimum participation. No surprise.

What I recomend is that you set up an investment 'pyramid' with the bulk of you monies in low risk low return basics at the bottom, and move your way up the pyramid with investments based on your own tolerance for risk, age, financial responsibilities, etc.

If we are all so lucky as to make a large amount here, start thinking like a rich person (read the Kiyosaki books PLEASE) and do things like buy your car at auction, buy ROI real estate, PAY OFF YOUR CREDIT CARDS ASAP> that is the worst invention from mankind... compounded debt.. and most cycling every 25 days to 'gig' your monthly-payment-mentality.

Good luck to all, I do believe in positive thinking and thinking about how to structure your wealth is a good thing regardless... dont you think :-)

Paul

Acapulco

PS: I/we are in the process of developing a get-out-of-debt program for dummies that we hope to have out to market next year. Sort of a web-based, plug-in-your-numbers, and just follow the emailed recomendations monthly. (You wont need it since you will have been smart enough to pay off compounded interest, but maybe your cousin Bubba who laughed at the dinar... may need it down the road...)

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Excellent observations and recommendations. To hedge against the potential of loss of purchasing power of the US dollar through inflaction, would you recommend some offshore investments, e.g. a swiss annuity?

Its very hard to recomend offshore investments to say, someone who has never travelled. By that I mean is that you may find that you can only deal with swiss anuities with someone outside the US, and also makes the liquidity in case of an emergency quite a hassle. Not sure if the benefits of that particular product outweigh the logistical limitations, especially if you dont travel there but again, a lot depends on where that vehicle falls in your overall strategy, but I have heard good things about Swiss annuities in general.

In that same note, I would like to point out that if this investment pans out, that one should consider the 'outside' world a little more. As americans, we are somewhat geographically locked into two neighbors that are nothing like say europe or asia for diversity. Perhaps you already know that if you set an 'official' residence outside the US, you have a huge advantage where you dont have to pay US taxes on the first $82,500+ in income and many countries like Panama dont tax your outside income. I myself are taking advantage of that, and also of an offshore banking platform that lets you within 20 seconds change your account into any variable of other international currencies, such as one of my favorites, the swiss franc. With the advent of the world printing more and more debt-paper, it may not be a bad idea to have a little physical precious metals. Did you know that in WW2 you could of bought a house with just 5 grams of gold? During some extreme times, you'd be surprised what a hedge like that can do for you.

I also would highly recommend looking at possible double citizenships, as I was able to do so just because I had a grandfather that was Irish. From there, there are a lot more 'options' if you get my gist.

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When I worked way back when as an estate planner, it was interesting to see the products wealthier people had access to.

Even I couldnt come up with the minimums required for some of the very same products I was marketing at times.

This is not advice in particular, as everyones financial situation and desires vary wildly. Im just contributing some things I came across worthy of thought.

I saw some postings of an 'investment' via some attorney which could pay 3% or so per MONTH. I have a sneaky suspicion its one of those HYIP programs (hi yield investment program) which involves a private contract and not much else. Be careful, there is no need to go into such Maddoff type programs to make decent money. Ask for long term referrals and you'll see how they back-peddle saying is a "invitation only, secret investment" BS. BEWARE

Since starting in 2011, mr obama has returned the famous 'death-taxes' you need to consider how to structure your estate as well as your investments for worse-case scenarios. Dont set your legacy to get later 'bullet-ridden" due to bad planning. Look into Q-tip, ABC and living trusts as well. IF set up properly, you can DOUBLE the amount of estate tax exemption from the start. Both husband and wife can have their exemptions (I think its around 1 million each) be lumped together with the right trust..

I was also reading people putting down Whole Life insurance. Be careful, you dont know what its really all about. Life insurance, in an estate settement especially is particularly effective to pay these new estate taxes (as high as 55%) for inheritors since the proceeds are very fast and very liquid and particularly TAX FREE. If you dont leave adequate amounts of cash for these unforseen expenses, your progeny may have to sell your assets in fire-sale prices to pay for these taxes. Also, term life keeps going up with age, and whole life was designed in one respect to deal with the increase of life insurance costs. Supposedly, the internal growth of the policy would then cover the cost of rising insurance to make it a more longer term life product for the individual. I also remember when A L Williams made it a business to get people to cash out of their whole life policies to promote 'buy term and invest the rest'.... guess what happened? the majority of people bought term and SPENT the rest. So after a few years, they had to drop their term life due to rising costs and ended up with nothing at the end. Term by itself is a good product DEPENDING what you intend to do with it. Usually, its a good product to cover your liabilities and income temporarily WHILE you build up your estate. (term life only pays 3% of all the ins. written) Then when your estate is worth millions, your need for certain types of life insurance diminishes since you have enough in your own estate.

Another product of interest, are annuities which have an annuitization option. Annuitization is an option you can excercise that lets you convert a lump sum amount into a guaranteed income. Even a combination of an IMMEDIATE annuity, which you can buy that guarantees an amount of income for LIFE... some with a clause that pays you REGARDLESS of how long you live, and this income is NOT accessible by lawsuits, garnishments, etc. Annuities can be a good base for a low-risk product, which offer tax-deffered growth (as opposed to bank CDs) and tend to have a better rate of return as well.

We used them a lot to structure the base for many estates, due to their great tax deferred growth, and annuitization features, as well as access to moneys without penalties in case of medical emergencies.

Warrent Buffett also invested heavily one time into life settlement products. It caught my interest, as it was another investment vehicle which offered consistent say 16% returns yearly with no risk of market, war, or oil effects. BUT I would only consider going with one of the companies who is PUBLICLY listed and has at least a 10 year record that you can look at so there is some accountability. A good option to DIVERSIFY your portofolio since so much is market-sensitive.

You might want to also look at Texas tax certificates which I believe pay 15%, one of the highest in the nation, and if you want a small percentage in hi risk- hi return there are some registered institutions which are getting as much as 40-60% returns in the high frequency trading arena but of course require higher minimum participation. No surprise.

What I recomend is that you set up an investment 'pyramid' with the bulk of you monies in low risk low return basics at the bottom, and move your way up the pyramid with investments based on your own tolerance for risk, age, financial responsibilities, etc.

If we are all so lucky as to make a large amount here, start thinking like a rich person (read the Kiyosaki books PLEASE) and do things like buy your car at auction, buy ROI real estate, PAY OFF YOUR CREDIT CARDS ASAP> that is the worst invention from mankind... compounded debt.. and most cycling every 25 days to 'gig' your monthly-payment-mentality.

Good luck to all, I do believe in positive thinking and thinking about how to structure your wealth is a good thing regardless... dont you think :-)

Paul

Acapulco

PS: I/we are in the process of developing a get-out-of-debt program for dummies that we hope to have out to market next year. Sort of a web-based, plug-in-your-numbers, and just follow the emailed recomendations monthly. (You wont need it since you will have been smart enough to pay off compounded interest, but maybe your cousin Bubba who laughed at the dinar... may need it down the road...)

Good post Thanks Edited by Doug A
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A question if I may. I'm 64-retired not interested in spending the rest of my life watching the stock market. Do you think an annuity is the best way to go to just be able to sit back and enjoy.or is it in my best inteest to add other products as well?

Well, shooting from 'the hip" and not-withstanding anything about Dinar RVing

I would say, that as you get older, its somewhat wiser to slowly move into more 'boring' yet less volatile vehicles for the MAJORITY of you portofolio. (I say this not knowing your total financial picture) but can leave a little to 'play' with depending on your tolerance for risk/loss.

Let me give you a real lfe example.

I had an elderly couple who's husband was just ademate about trading stocks himself within his trading account.

Hed done well a couple of years in a row, probably averaging 15% (back in the 90s) and I had a heck of a time getting him to put a LITTLE back into something with a fixed rate annuity.

Needless to say, his wife was not happy - she knew very little about the market and she would of been more prone to put the majority into safer vehicles.

Well, what had to happen, happened. He shortly took a 22% hit to his portofolio. They called me, and I had to then explained to them that for them JUST to recoup back to their previous amount would

have to have a STELLAR gain the next year, and it had to be more like 40% just to recoup the 22% loss. Something people dont realize the math of a loss.

You see, when you are say 40, you are working, have income from work, and can afford to wait for a market recoup. At 69 you dont have that luxury. You shouldnt be risking the majority of your monies that way.

He would of been better to spread his portofolio into some 6% x 5 year annuities, (various different companies) and if he wanted to 'play' maybe small indexed annuity with a 'racheting' factor.

Racheting means it locks in a markety gain (say 7% of an 11% ) where you lock in a major % of a market gain, but have a fall back safety factor of 0 in a worse case scenario. Meaning if the market looses, you dont. and so forth.

My suggestion without knowing your whole financial makeup is to consider how ANY income may affect your social security income next year/at retirement. Look at first in - first out vehicles. You can do this with certain annuities and immediate annuitizations to minimize your income 'penalties". You'll have to check with a CPA familiar with social secuirty. You do realize social security penalizes you for outside income and that is a factor to consider.

If you decide to go that route, I recommend buying MANY small annuities (if that is your preference) that have 1 year or immediate annuitization options, so you can turn those into income sources as the need arises, and can do so in increments since it doesnt cost any different to break the investment amounts into smaller policies than one big one. Check track records of performance.

On another note, I should say take a hard look at your medical coverage long term. Medicare/medicaid have very limited coverages in some areas I call 'holes'. I dont know if you can self-insure yourself, but consider things like long term care, especially for the surviving spouse if nothing else, which with a 25% incidence factor, can quickly decimate an estate with just a couple of hundred thousand dollars on an unforseen outset. I have seen recent policies which return all the monies paid if not used back, but see how much this 'option' really costs you...

Back to the original story, I should state that when the husband passed away, the surviving wife decided to put it all into various type annuities and has a pretty good peace of mind and has an income she can put her finger on for years to come without having to nail-bite thru market upheavals, which in my OWN PERSONAL OPINION are going to get much more VOLATILE.

Edited by Don Paul
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I should excuse the strict use of annuities in my above examples. They are just vehicles which I am more familiar with for some tax defferance purposes in large estates, as well as for medicaid protection, but there are other vehicles with low risk factors out there - too many to list for this example, some which have medium-term investment windows which can average 15% yearly, etc. I would recomend a commission-based estate planner as well as a non-commission analysis and just pick the best of both worlds. :-)

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  • 8 months later...

Notice the term of products and vehicles. I know I may be explaining in to o much detail. The less you know the more you must trust your advisers.

1. How to get good advisers:

Talk to several CPA and well known attorneys, etc. ask whom they would reccommend. When you have the same name pop up 3 or 4 times go see those 2 or 3 that made the grade. Chose one.

2. (even if you do one) I strongly suggest that you commence learning about fiancial aspects of your life and the world. Everyone has money problems, the poor do not have enough and the rich must figure out how to not have too much laying around gather dust. I like the latter problem.

Money does not make you happy. It can however give ones the resources to take care of some health problems. Go to the dentist, doctor, massage therapist, chiropractor, eat better, and have a healthier lifew stlye.

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Don Paul, I currently have trust funds setup for my children with my current investments not the Dinar yet. Current funds based off of Mutual Funds in Vanguard and T Rowe Price. Your opinion sir?

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  • 1 month later...

You sound like you know what you are talking about Mr. Don Paul... Now......May I ask you a question?

Since you mentioned travelling.... Do you maybe share the concept of PT ( Perpetual Traveller)? Just curious..

Many years ago I read some of W.G.Hill " PT" series books.... I concede that concept , if one is capable enough to make it come true, is fascinating.

Edited by umbertino
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You sound like you know what you are talking about Mr. Don Paul... Now......May I ask you a question?

Since you mentioned travelling.... Do you maybe share the concept of PT ( Perpetual Traveller)? Just curious..

Many years ago I read some of W.G.Hill " PT" series books.... I concede that concept , if one is capable enough to make it come true, is fascinating.

Yes, I do count myself amongst them. I am european born, and luckily was able to secure a second passport, something I recomend anyone with at least a foreign born granparent could probably acces.

I would like to quote Simon Black latest posting:

In March 2010, President Obama signed into law one of the most arrogant, unfeasible bills ever to hit the books.

Known as FATCA [Foreign Account Tax Compliance Act], it was enacted as part of the inappropriately titled HIRE Act; the law requires that foreign banks must disclose personal account details for their US clients, essentially agreeing to get in bed with the US government.

If a foreign bank does not agree to disclose information on all of its US customers, then the law further requires that noncompliant banks withhold a 30% tax on all payments that may have originated from the United States.

The arrogance of this law is overwhelming. It would be as if the Saudi King issued a decree forbidding US grocery store chains to sell pork to Saudi citizens while on US soil. Crazy, right? Americans would be up in arms-- who do those Saudi's think they are, trying to control a US company on US soil?

But that's exactly what FACTA does. Needless to say, the international banking scene has been up in arms since March 2010 when the law was passed. Those cries have largely fallen on deaf ears... until late last week when the US government granted a brief extension for the law to take effect.

This is important, and I'll explain why.

We're in the early stages of what I call the Age of Turmoil-- a tumultuous time in which governments turn to increasingly desperate, authoritarian measures in order to maintain the status quo.

The drive their economies into the ground, generate painful inflation, and destroy the livelihoods of millions, even hundreds of millions... and when you don't like it, they turn their police forces after you to ensure they still get to live a life of power and privilege on your dime.

We've already seen these people in action-- they've seized pension accounts, turned the nation into a police state, ruined the economy with corrupt, reckless spending programs, inflated the currency to dangerous levels, and made it extremely difficult to do basic things like establish a business or even open a bank account.

There are a few things you can try to do about it. The default option for most people is to do nothing. They'll stick their heads in the sand as things continue to get worse and their families' livelihoods get eaten away by public policy.

Others think they can 'vote the bums out,' only later to realize that the brand new crop of politicians is just as bad as the old batch.

I've long been an advocate of the internationalization approach-- diversifying your assets and interests overseas to reduce the control that one single government has over you.

If you live, work, bank, invest, own property, store gold, operate a business, etc. in the same country of your citizenship, you are truly putting all of your eggs in one basket.

What about tax free municipal bonds as part of the portfolio. I know they are not exciting, but currently you can get AAA rated bonds tat yield 4-4.5% with payouts every six months.

I personally think you should analyze your risk tolerance and age and figure a formula going from solid "boring" to risky with a decreasing percentage.

Im sorry to say that I dont feel fund managers are the answer anymore. You should address investments in fields which are not market, war, or politically sensitive if possible.

Each person has as different a risk tolerance and "patriotic" influences as belly buttons. One could not possibly give you advice without a thurough personal interview.

I do however suggest looking at venues outside of those offered by people whom you think are 'trustable' because they go to the same church you do and the like.

(I think you should do a research on the sate of municipal debt and who rates them very diligently)

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When I worked way back when as an estate planner, it was interesting to see the products wealthier people had access to.

Even I couldnt come up with the minimums required for some of the very same products I was marketing at times.

This is not advice in particular, as everyones financial situation and desires vary wildly. Im just contributing some things I came across worthy of thought.

I saw some postings of an 'investment' via some attorney which could pay 3% or so per MONTH. I have a sneaky suspicion its one of those HYIP programs (hi yield investment program) which involves a private contract and not much else. Be careful, there is no need to go into such Maddoff type programs to make decent money. Ask for long term referrals and you'll see how they back-peddle saying is a "invitation only, secret investment" BS. BEWARE

Since starting in 2011, mr obama has returned the famous 'death-taxes' you need to consider how to structure your estate as well as your investments for worse-case scenarios. Dont set your legacy to get later 'bullet-ridden" due to bad planning. Look into Q-tip, ABC and living trusts as well. IF set up properly, you can DOUBLE the amount of estate tax exemption from the start. Both husband and wife can have their exemptions (I think its around 1 million each) be lumped together with the right trust..

I was also reading people putting down Whole Life insurance. Be careful, you dont know what its really all about. Life insurance, in an estate settement especially is particularly effective to pay these new estate taxes (as high as 55%) for inheritors since the proceeds are very fast and very liquid and particularly TAX FREE. If you dont leave adequate amounts of cash for these unforseen expenses, your progeny may have to sell your assets in fire-sale prices to pay for these taxes. Also, term life keeps going up with age, and whole life was designed in one respect to deal with the increase of life insurance costs. Supposedly, the internal growth of the policy would then cover the cost of rising insurance to make it a more longer term life product for the individual. I also remember when A L Williams made it a business to get people to cash out of their whole life policies to promote 'buy term and invest the rest'.... guess what happened? the majority of people bought term and SPENT the rest. So after a few years, they had to drop their term life due to rising costs and ended up with nothing at the end. Term by itself is a good product DEPENDING what you intend to do with it. Usually, its a good product to cover your liabilities and income temporarily WHILE you build up your estate. (term life only pays 3% of all the ins. written) Then when your estate is worth millions, your need for certain types of life insurance diminishes since you have enough in your own estate.

Another product of interest, are annuities which have an annuitization option. Annuitization is an option you can excercise that lets you convert a lump sum amount into a guaranteed income. Even a combination of an IMMEDIATE annuity, which you can buy that guarantees an amount of income for LIFE... some with a clause that pays you REGARDLESS of how long you live, and this income is NOT accessible by lawsuits, garnishments, etc. Annuities can be a good base for a low-risk product, which offer tax-deffered growth (as opposed to bank CDs) and tend to have a better rate of return as well.

We used them a lot to structure the base for many estates, due to their great tax deferred growth, and annuitization features, as well as access to moneys without penalties in case of medical emergencies.

Warrent Buffett also invested heavily one time into life settlement products. It caught my interest, as it was another investment vehicle which offered consistent say 16% returns yearly with no risk of market, war, or oil effects. BUT I would only consider going with one of the companies who is PUBLICLY listed and has at least a 10 year record that you can look at so there is some accountability. A good option to DIVERSIFY your portofolio since so much is market-sensitive.

You might want to also look at Texas tax certificates which I believe pay 15%, one of the highest in the nation, and if you want a small percentage in hi risk- hi return there are some registered institutions which are getting as much as 40-60% returns in the high frequency trading arena but of course require higher minimum participation. No surprise.

What I recomend is that you set up an investment 'pyramid' with the bulk of you monies in low risk low return basics at the bottom, and move your way up the pyramid with investments based on your own tolerance for risk, age, financial responsibilities, etc.

If we are all so lucky as to make a large amount here, start thinking like a rich person (read the Kiyosaki books PLEASE) and do things like buy your car at auction, buy ROI real estate, PAY OFF YOUR CREDIT CARDS ASAP> that is the worst invention from mankind... compounded debt.. and most cycling every 25 days to 'gig' your monthly-payment-mentality.

Good luck to all, I do believe in positive thinking and thinking about how to structure your wealth is a good thing regardless... dont you think :-)

Paul

Acapulco

PS: I/we are in the process of developing a get-out-of-debt program for dummies that we hope to have out to market next year. Sort of a web-based, plug-in-your-numbers, and just follow the emailed recomendations monthly. (You wont need it since you will have been smart enough to pay off compounded interest, but maybe your cousin Bubba who laughed at the dinar... may need it down the road...)

Since you are not giving advice, I thank you for allowing us to learn from your past and thoughts. :) Very, very nice post! GLTY and all. Go RV.

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