Unleash Your Inner Child For Success in Life...

As we grow older and dare I say mature, the connection with our inner child fades. It's no secret that as American adults, we are overworked, overstressed and overwhelmed. Between the hectic schedule of work, chores, social groups and other commitments, it's difficult to remember our childhood dreams.

Can you remember when you wanted to be an astronaut, firefighter or president? I guess, being an insurance adjuster was accidentally left off the list. When you're young, the sky's the limit. As we grow older, we develop tunnel vision and see only what's directly in front of us. We can easily lose sight of what's truly important in life...the childlike hope, passion and creativity.

When we were children, our schedules were completely laid out for us. In grade school, we were told when to play, sleep, eat and even what to say. Yet, that didn't keep us from letting our imagination run wild and enjoying each moment. This country was built on the imagination and possibility of our forefathers. Life, liberty and the pursuit of happiness are penned in the Declaration of Independence. You need to connect both your rational mind and childlike creative mind to see what's really possible, instead of only what is. Whatever it is, find your bliss.

Wishing You Wealth in all its Greatest Forms,


Alex

Living in the Moment

There have been thousands of books and articles written on living in the moment. It has been a spiritual concept based on developing a greater awareness or consciousness. In a fast-paced world that is focused on activity, achievement and results, it's easy to lose the present and get lost in the concerns of tomorrow. Humans are social creatures by nature, but many still have a fundamental need for silence and reflection.

By living "fully out," you can not only experience reduced stress, but much more. Studies have shown that you can improve your health as the link between our state of mind and physical health increases. You can better control your thoughts, which can allow you achieve more with focused energy. And most importantly, you may find your purpose in life. It was a quiet moment in meditation, when I gained a greater understanding of my life's purpose to improve the lives of those around me.

Most of us let the present slip away, allowing precious time to pass by and instead worry about the future or punishing ourselves for the past. It's time to live in the moment and be mindful.

Wishing You Wealth in all its Greatest Forms,

Alex

Can You Be Honest and Successful?

I recently was sent a blog post from the Zen Habits that absolutely captivated me. The title was “How to do what you love, without selling your soul.” It piqued my interest since I have wondered how to do that in my own financial practice. In today’s age, there are advertisements everywhere…from television, to buses, on buildings, the internet and even in the bathroom stalls. They are selling a product that purportedly will solve all of my problems. I am a bit embarrassed, but I admit that I bought the “Flowbee” hair cutting system way back…only to find that it was completely worthless. So this begs the question of whether or not you can be both honest and successful in a world where fine print is written by attorneys for attorneys with little concern for the American people.

In a perfect world, you would just need to do what you enjoy and people would start calling you up asking for you to provide your product or service. The world is not perfect, far from it. You have to give people a good reason to buy what you have to sell. Maybe you have expertise in an area or you have stumbled upon a solution to a common problem. One thing is certain; many “overnight successes” took a lifetime to happen.

There is almost a certainty that if what you love doing is providing value in the lives of others, you will be successful. Those that have committed to helping mankind overcome obstacles have been rewarded handsomely since their concern is genuine and their heart is pure. I would use the word karma, but I fear that word has been abused and misused all too many times. I have taken the oath to help others. Many others already have and this is the only real way to create a “sustainable community.”

To read the Zen Habits article, click here.

Wishing You Wealth in all its Greatest Forms

Alex

Make Do With Less…

The number of job losses since January of 2008 has totaled more than 1.2 million. According to the Labor Department’s monthly jobs report, the unemployment rate rose to 6.5% from 6.1%. This signifies the highest unemployment rate since March 1994 and exceeded the economist’s forecasts of 6.3%.

The rate of inflation is typically between 3-4%, but for the month of September it was announced at 5.9%. Few in Generation X and Y, who have grown up on iPods, X-Boxes, and Plasma TV’s have lived through these difficult times.

It’s a great time to lower expenses and pass these good habits onto children. When I was a kid, I got grounded, for wasting electricity, water and food. That’s what happens when you have a dad that’s a member of the Environmental Protection Agency (EPA). Make sure to turn off the lights when leaving a room, take baths instead of showers, and only buy as much food as you can eat. We must each look around and see how we can conserve.

We can now learn the difference between our needs and wants. During times of economic expansion, your wants may seem like necessity. Your needs include food, clothing and shelter. Your wants are fancy dinners out, Couture clothing, and a Beach house. This is a time to tighten our financial belts and focus on needs. The economy has a cycle and it’s certain that there will be a time again where we can indulge our wants.

Wishing You Wealth in all its Greatest Forms

Alex

“It’s better to give than receive”

When I was a child, I didn’t understand this statement, but now as an adult I realize the satisfaction in knowing the difference I am making. The holiday season is filled with family, friends and other loved ones. Although, I am all but guaranteed to eat too much and end up in a turkey induced coma, many families struggle with keeping food on the table. You can give thanks in many ways and help others in the process. You can donate food or better yet, your time to the local food bank. A personal favorite of mine is Second Harvest Food Bank of Orange County, which you can visit here. I have seen the difference they are making in the lives of the hungry first hand.

You should always know how your charity is spending their money. To research how much actually is put into the hands of the needy, go to Charity Watch . If less money is being spent on administration and fundraising, more money can be spent helping those that really need it. Also, keep in mind that your donations are tax deductible. You should always keep receipts or canceled checks for your donations since the IRS can audit donations. All clothing and furniture donations need to be in good or better condition in order to receive a tax deduction. If you have any interest in seeing the IRS rules regarding charitable donations, visit here.

Have a happy and safe Thanksgiving…

Wishing You Wealth in all its Greatest Forms,

Alex

A Rags to Riches Story...

They say one man's junk is another man's treasure. In my case, that was all too common. Growing up, much of my wardrobe was from second hand stores or garage sales. I rarely received brand new clothes and can still remember getting up early on Saturday to go to yard sales with my mom. Was I envious of my friends nicer clothes, bikes, toys? Nope. My mom did a good job of explaining to me that whether you have little or you have lots, someone will always have more than you and someone else will have less. But, all you NEED is enough. I think part of going to garage sales was to allow her to splurge and not feel limited by the cost. We were a working class family living in Anaheim, next to the happiest place on earth(Disneyland).

Last year I read this article from the International Herald Tribune on the "Queen of Trash." It may not be a very glamorous title, but she will take it...all the way to the bank. From driving a used Dodge Caravan collecting cardboard years ago, she has become one of the richest women in the world. She is richer than Oprah Winfrey, Martha Stewart and the CEO of eBay, Meg Whitman. From meager beginnings great possibility still exists. Your future wealth is not related to a history of lack...if it existed for you. We are all born with different opportunities and disadvantages, but it's what you do with those every day that define you as a person.

Wishing You Wealth in all its Greatest Forms,

Alex

College Tuition Inflation

The real expense of educating children has become one of the greatest financial burdens facing parents today. A college education was once a privilege reserved for aristocrats. The value of a college education is higher today than ever before. The demands of our global economy over the years will be for more educated people. Between 1993 and 2003, there was an increase of 40% of college graduates, bringing it to 40,621,000 per the National Science Foundation study.

In current times, employers are looking for increasing amounts of education to compete for today's jobs. Except for the purchase of a home and the accumulation of assets for a retirement fund, paying for higher education is one of the highest priorities and also one of the most expensive, that parents will ever make.
Excerpted from the College Board website, the education costs have experienced extraordinary inflation year over year.

SECTOR	2008-09	2007-08	% CHANGE
Public 2-Year	$2,402	$2,294	4.7%
Public 4-Year	$17,452	$16,586	5.2%
Private 4-Year	$25,143	$23,745	5.9%

*excerpted from www.collegeboard.com

There is going to be a greater need and better planning to provide the education needed to compete successfully in the workforce of tomorrow. In later posts, I will discuss the various options to create a college fund.

Wishing You Wealth in all its Greatest Forms,

Alex

Types of Insurance You Might Need...

I promise you that this will not be the most interesting post, but it will be informative. We all know we will have different types of insurance in our lifetime, but it can be so confusing. I will provide a brief overview of the different types of insurance, including:

• Auto Insurance
  
• Homeowner's Insurance
  
• Renter's Insurance
  
• Life Insurance
  
• Disability Insurance
  
• Health Insurance
  
• Long Term Care Insurance
  

Auto insurance is the most common type of insurance and pays for damages to persons and property when automobiles are involved in accidents, fires, thefts etc. Homeowner's and renter's insurance covers dwelling and/or personal property from fires, floods, thefts and even volcanoes if you live in Hawaii. Life insurance provides financial protection from a person's death so that dependents do not suffer hardship as a direct result from the loss of life. Businesses also use life insurance to protect against the death of a key person in the firm. Disability insurance pays a percentage of a person's wage when they are unable to work…think AFLAC. Health insurance covers the medical bills for the treatment of illnesses. Long term care insurance is used to pay for individualized care beyond medical and nursing care for people with disabilities.

When you own insurance, you have a contract with the insurance company that you will be compensated for "covered losses." For instance, I am covered for $100,000 in the case of my death(loss). The typical losses include death, destruction or theft of property, disability, illness and so on. Even if you have made only one premium payment, their contract will specify that the insurance company pay the policy amount. The goal of insurance is to reduce your risk and provide a smaller loss (premium payments) in exchange for a larger loss (death, property damage, medical bills).

I don't like paying for insurance, but it sure is nice having the "peace of mind" of being covered. These are the basic types of insurance you will probably see in your lifetime. I will spend more time on each different type of insurance in future posts.

Wishing You Wealth in all its Greatest Forms

Alex

Get the Vote Out...

Tomorrow is the day that you get to put democracy into action. I dislike the media making every election "The most important election of our lifetime." Democracy I love, sensationalism...not so much. Whether you are a "McCainiac" or an "Obamatron,"
this is your opportunity to be heard.

If you are unsure of your polling place in Orange County, look it up here. I believe that both candidates truly want to do what's best for this county. This is a great article on CNN Political that provides a nice break from the madness."If you can’t (or can) say anything nice. . ."

Wishing You Wealth in all its Greatest Forms

Alex

Your "Hour of Power" is Here

I just got wonderful news. Have you received something unexpected lately?
Maybe, it was extra time on the parking meter or finding money in the back pocket of your favorite jeans or getting an extra hour in your day? Today, I got just that. I had no idea that today was the end of daylight savings time and would be given the gift of time. Being so, I didn't make grand plans...like sleeping in an extra hour. Instead, I have decided to spend it connecting with old friends that have really made a difference in my life.

You can spend it however you like, but I recommend using the extra time and find ways to create more wealth in your life. Whether that means wealth in friendship or wealth in financial terms, like doing that budget that you have been putting off. Either way, I hope you make this extra hour count.

Wishing You Wealth in all its Greatest Forms

Alex

More Reasons to Keep Contributing to Your 401(k)

I found this article on Money, where a concerned employee wanted to know if he should cut back his 401(k) contributions and invest the difference elsewhere. You would miss out on being able to contribute your money pre-tax and the tax deferral can lead to greater growth over the years. To access the full story, just click here.


Wishing You Wealth in all its Greatest Forms

Alex

New Home Sales Rise in September

This just in...New home sales showed strength in a rise of 23% after showing a disappointing decline of 30% in August. The law of supply and demand states that if prices drop enough, people will buy. The profit margin for home builders have dropped significantly, yet interested buyers are waiting to take advantage of the weakness in home prices.

For more information and the complete story from Xinhua click here.

Wishing You Wealth in all its Greatest Forms

Alex

National Assn. of Realtors - Existing Home Sales up 5.5%

It looks like there is some good news in real estate (for once). The affordability factor of homes is improving leading to buyers stepping off the sidelines. To read the full report from Realtor.org click here.

In Orange County, the median sales price has dropped to 2003 levels. This is partially the result of homes decreasing in value coupled with the fact that financing remains much easier to obtain (and afford) for properties below $500,000. To read the OC Register article, click here.

Wishing You Wealth in all its Greatest Forms

Alex

"Stop Contributing to your 401(k)"

I am not advising that, but it's what I overheard while out at dinner this past Saturday. "If you put your money in your 401k, you are just going to lose it anyway." When my grandfather was still alive he told me to do the opposite of everyone else and I would be wildly successful. I have found that to be good advice time and time again...In the beginning of 2000, everyone was talking about the secretary at Netscape who became a millionaire...By April, the dot com companies were known as the "dot bombs." A financial commentator once said that "when people are greedy, you should be fearful and when people are fearful, you should be greedy."

Many people have seen the values of their 401k's drop in value, so instead of wanting to contribute more, they want to contribute less or discontinue contributing altogether. We must follow the golden rule of investing "buy low, sell high." Unfortunately, our emotions can play dirty tricks and take us to Jerry Seinfeld's "bizarro" world...where up is down and down is up. Most investors buy high and sell low since they allow their decision to be based on popular sentiment and not logic. When everyone is talking about the great performance of a particular stock, they buy and when others get scared, they sell. They have just bought high and sold low. The law of averages tells us that to create an average, you need both high numbers and low numbers. If the stock market has outperformed dramatically, then it may be time for a period of underperformance.

It's believed that 20% of employees have ceased contributing to their 401k plans in the last year. If you decide to halt contributions until the market stabilizes, then you are saying that you would rather pay higher prices for stocks and you spurn the idea of taking advantage of lower prices. It's normal to allow our fears to play a part in our decisions, but logic needs to lead our actions toward greater success.

Want to know what other people are thinking? Here is a poll from Yelp

Wishing You Wealth in all its Greatest Forms

Alex

College and Beyond...

Many college seniors will be graduating this upcoming June, but there are stark realities that need to be dealt with. They know that with widespread layoffs, that the job market is going to be more competitive...possibly leading to fewer jobs and reduced pay scales. Yet, the decision to continue on to attain graduate degrees are going to be more difficult as well. The well has dried up for many student loans and taking on the additional debt of student loans seems frightening giving the current economic environment. Parents who intended to pay for their children's education are now thinking twice since the stock market has impacted the value of their 401(k) and IRA's. The boomers have watched their net worth decrease by $2 trillion dollars between home value and stock market prices.

The truth is that in difficult economic times, to get the job of choice, a person needs as much education as possible. Prospective graduate students should do everything in their power to continue on with higher education. There are still millions in grants and scholarships available to those who seek them out. With the birth of the internet, applying for a grant is as easy as going to Grants.gov by registering and applying.

Resources are always available for those committed to achieving more.

Wishing You Wealth in all its Greatest Forms

Alex

Slowing Down with Traffic School

Yesterday, I attended traffic school. I received a speeding ticket for going 75 mph on the freeway 3 weeks ago at 6:00am. At first, I felt slighted and tried to rationalize that others were going 80-90mph, so they should be getting tickets. Then, I tried to dismiss the idea that I was in the wrong since there were very few cars on the freeway at this time in the morning. The bottom line is that I was going above the speed limit and I need to take responsibility for my actions. Anyhow, the Highway patrolman was very nice and nearly apologized for giving me the speeding ticket.

I was dreading traffic school since I have been so busy these last few weeks. You might be surprised, but it was the best $57, I have spent in a long time. The instructor was kind and had a good sense of humor. During our 8 hours together, he told us about how his life has changed over the years. He used to have “road rage” and be in a constant hurry. He read us a story from a former student that tried to get in front of another car, but ended up losing control and veering into the bike lane and hitting a couple on bicycles. She ended up surviving, but her husband passed away from this accident. The truth is we all lead busy lives filled with things to do and we often try to minimize the time we spend on the road by speeding, cutting in front of other cars or driving erratically. We drive so often that we forget how large of a responsibility it is. Many people are in a rush and bring their stresses on the road.

I hope that during this holiday season, we take the time to focus on what’s really important, getting to our families and friends safely.

Wishing You Wealth in all its Greatest Forms

Alex

Road to Someday…

We are living in difficult times. House values have fallen, the stock market is at multi-year lows and there is reduced access to credit. Home prices are much lower in Southern California then they have been in years. The S&P 500 is down (32.15%) year to date, reflected in quarterly 401(k) statements nationwide. I have stellar credit, but was told that my credit line would be reduced by 25%. I knew this day would come and I am prepared for it.

Most people talk about saving, but never do it. The truth is that to become financially successful, either you have to work harder or your money has to. I choose my money since I only have 24 hours a day and I would much rather spend it with family and friends than working. Your choices are saving more today or working into your “golden” years. People in their twenties often feel that they have plenty of time to save later so they spend freely. Then, in their thirties and forties, money becomes tight since they are now paying for a new home or raising kids. In their fifties, they discover that they have less than 15 years (only 780 week) until they retire. At this point, it usually takes too much money create an adequate retirement fund. This means that living the retirement of your dreams will be nearly impossible.

Retirees often look back and are disappointed that they didn’t begin saving and investing when they were younger. If you develop good financial habits during these difficult times, it will pay dividends and serve you well into the future.

Wishing You Wealth in all its Greatest Forms

Alex

Banking in Uncertain Times

These are certainly difficult times for banks. Indymac bank failed just a few months ago, Washington Mutual failed a few weeks ago and Wachovia was purchased by Citigroup. The amazing thing is that while these banks have faltered, other banks like Bank of America have purchased Merrill Lynch, one of the most recognized brokerage houses in the entire world. The headlines make many feel like "financial armageddon" is either around the corner or here. Although, this can be very disconcerting, how do you know if your money is safe?

The Federal Deposit Insurance Corporation was created in March of 1933 since thousands of banks failed after the stock market crash of 1929. The FDIC insures up to $100,000 per depositor in individual accounts, or up to $200,000 in joint accounts. It also insures up to $250,000 for individual retirement accounts invested in insured deposits. To find out more, go directly to the FDIC site.

Wishing You Wealth in all Its Greatest Forms

Alex

What Can't Money buy?

There are thousands upon thousands of books, magazines, and websites devoted to how people can get more money, invest to grow their money or how to reduce expenses so they can keep the money they have. Money can buy art, luxury automobiles, amongst a seemingly endless list of things. Although, it’s true that the more money one has, the more they can spend, travel and play. It can provide the freedom to work less and contribute more to the church, community or causes dear to your heart.

It has been said many times by wise men and less than wise men, but money is a means to an end. Money cannot buy friendship, love or knowledge. In your life you may have noticed, that it also can’t make you a better person in and of itself. The value that our life has cannot be purchased with money. The key to benefiting from money is turning it into wealth…a resource only to the extent that it helps you enjoy and live a richer, higher quality life.


Wishing You Wealth in all its Greatest Forms

Alex

401k Anxiety?

Since the company pension has become more of a myth than a reality for most employees, the 401k has stepped in to take its place. In today's volatile market, many people have seen their nest eggs shrink. These are difficult times for banks, where investment banks Bear Stearns was sold to JP Morgan Chase at bargain basement prices and Lehman brothers has filed for bankruptcy protection. Locally, we have seen Indymac bank taken over by federal regulators after its inability to redeem deposits.

Needless to say that these have been historic times and not in a good way. If you have seen the value of your 401k drop, you are not alone. What's the best way to deal with losses? You can reduce your exposure to the stock market by diversifying into bonds or by buying insured certificates of deposit. The risk you run is that when the market gets back to normal, you might miss out on the upside since stocks have outperformed bonds and cd's substantially in the past.

These are definitely trying times, but there's no need to panic if you have a long term horizon. If you have a relatively short horizon, this might be the time you sit down with your financial advisor and review your risk tolerance and confirm your retirement goals.

Wishing You Wealth in all its Greatest Forms

Alex

Is Your Retirement Projection Accurate?

If you have a financial advisor, then you may have a projection that hasn’t panned out in the last year, in fact it hasn’t done you any favors over the last ten years. As of this writing, the S&P 500 has lost money when you adjust for inflation over the last ten years. Directly off of Vanguard’s website, the Vanguard 500 Fund Investor (VFINX) has returned 2.81% annually, over the last 10 years, net of fees. This fund is a proxy for the S&P 500, the index of the largest 500 corporations. Over the last year it is down 13.12%. Most financial projections are based on retirement dollars growing at 8%. This is not an arbitrary number, but one that is based on assumption of taking out 5% annually, then an additional 3% to offset inflation.

In the current market environment, you only have two choices. Either you need to change your lifestyle and expectations of the future or reassess your financial strategy and create one that is diversified enough to hedge from market declines.

Wishing You Wealth in all its Greatest Forms

Alex

The Problem with Macro-Real Estate

The media has painted the real estate market with one broad stroke, releasing national statistics on a weekly basis. One week, it appears that the problems are just beginning, while the very next they claim that the worst may be over. The problem is that the national market is not a good indicator or what is happening in your hometown. The market is not some untamed animal, but made up of the dreams, hopes and desires of millions of families, not to mention the local economies. What happens in Orange County, California is going to be in stark contrast to what is happening in Detroit, Michigan.

The key to where you should be focused on is what is happening in your "neck of the woods." In Orange County, we have seen a huge increase in the number of buyers looking for new homes. Home sales increased 43.4% compared to the same period last year. At the same time, the median home price fell 40.3% as reported by the California Association of Realtors. The decrease in median price is due to two factors, (1) Distressed property sales have made up to 40% of available home inventory (2) The availability and affordability of mortgage financing is still biased toward properties selling below $417,000.

The GOOD News.

There is evidence out there that a bottom may have formed for real estate. Over the last week, the pending home sales report showed signs of strength by shooting up to a reading of 89, which was unexpected by all market commentators. This is the highest reading since October of last year. It is becoming a seller's market for lower end properties. For instance in Garden Grove, the number of active properties represents only a three to four month supply for properties under $500,000.

The "Subprime Meltdown" that that has been blamed for the real estate problems is slowly going away. The number of Suprime mortgage rate resets has been a foreclosure driver and according to First American CoreLogic, the number of resets should drop dramatically by October. This, coupled with new federal and state laws to protect foreclosure prone homeowners will surely be support for stabilization of the market. With the holiday upon us signaling the end of summer, have a happy and safe Labor Day.

If you have any thoughts or comments, I would love to hear them.

Wishing You Wealth in all its Greatest Forms

Your Friend,

Alex

Tomorrow’s Retirement

The Retirement landscape is changing for millions of Americans and it’s being driven by both employers and the goals of future retirees. If you are currently working and plan to retire in the near future, you may have already seen these changes happening all around you.

It's very likely that the Baby Boomers, Generation X and Generation Y will “retire” later than previous generations. And it’s not only because the age for full Social Security benefits is changing. Retirement is no longer an event, but a process. Rather than an abrupt stop working full time, many have decided to trade in their full time stress for a part time love.

Instead of working for one company for 40 years and collect a company pension that will last forever, it's much more likely that you’ll have 4, 5 or more employers during your lifetime. Instead of being covered by the company pension, you’ll contribute to a 401(k) and if you are lucky receive an employer match on your contributions. Beyond that, it's unlikely that retirement will be years of sitting around...but much more likely an extended vacation before moving back into the work force at a slower pace with reduced hours and more “fulfillment.”

Unless you believe in reincarnation, you only live once. Live passionionately!

Wishing You Wealth in all its Greatest Forms

Alex

Credit Cards Hit You Where it Hurts – In the Wallet

Have you ever walked into a room and felt like they were laughing at you? You walked down the hall, only to hear the laughter, yet as soon as you opened the door, a silence gripped the room. Well, the credit card companies may be laughing at you. Credit has become more expensive for everyone, including the credit card issuers. A peculiar thing occurred this last month. Chase decided to change the date my payments were due from the 28th to 23rd. I don’t keep a balance on my Chase card and pay it off in full on the 25th like clockwork. On the 25th of July, I logged on to pay my balance, only to find out I was assessed a $39.95 late payment fee. The gal on the other end of phone told me that it was within their right to change the terms due to “market conditions.” I asked her to define market conditions, which she declined. Of course, I decided to speak with her manager who told me that since my payment history was great, she would reverse the late fee. I wasn’t happy about the fee, but not because of the dollar amount, but more because this felt like an attempt for the company to improve the bottom line with late fees…and my dollars. My credit history has been very good, but I would bet dimes to donuts that a less qualified borrower wouldn’t have received the favor.

Additionally, this morning when I logged online to review my account I noticed a message stating “Universal Change in Terms.” It amounted to either agreeing with a rate change from being fixed at 15.99% to a variable rate of up to 26.99% plus the Prime Rate or they would close my credit line. A recent study by Consumer Action found that 77% of the 22 major credit companies can change the credit terms – at any time for any reason. Here is a link to the Consumer Action study.

Things are tough out there for a lot of credit card companies and they are passing the buck by using dollars from your wallet. Before signing up for new credit and even with your current credit, be sure to read the fine print. Commit to being informed, it will pay dividends.

Wishing You Wealth in all its Greatest Forms

Alex

Work More, Retire Later?

It’s no surprise that millions of Americans are under prepared for retirement. I get told at least once a week, that they plan to continue working. On paper that sounds like a great idea, but you might be unaware that you may not be ABLE continue working. I am not talking about getting injured or becoming disabled. The landscape is changing and where older employees were once regarded as a company asset, many have now become liabilities. Companies are buying out higher paid employees at an alarming pace in the name of profit. The workforce is changing and becoming ever more competitive. When the economy hits a speed bump like we are experiencing today, the highest paid are encouraged to take the “golden parachute.” It typically means two years of severance pay and a kind letter from Human Resources. No more, no less.

From personal experience, my dad is 63 and even with all the education, certifications, not to mention the years of experience, it was difficult for him to find solid employment. They didn’t tell him to his face, but they are looking for someone younger, less experienced and most importantly… cheaper. High level jobs are being combined with lower level jobs, but compensated at the lower bracket. Here is a recent story on Yahoo that talks about job compression today.

So we have come full circle here. If you don't have enough to retire and you can’t just work longer, what can you do? The simple answer is positive financial choices today that will allow you to enjoy your golden years on your own terms. And if that doesn’t happen, Wal-Mart is always going to need “greeters.”

Wishing You Wealth in all its Greatest Forms

Alex

Financial Enemy #1

With terms from "massive inflation" to "subprime crisis" floating around in the media, it's easy to lose sight of what is really keeping American's from their savings goals. The biggest obstacle is that most people just don't know enough about their financial reality to make any headway. They don't know what they earn, what it costs them to live and they don't know their discretionary income.

It's time to educate yourself. Grab that spiral notebook, you haven't broken out since college days and sit down with your montly bill and statements. Figure out the amount that you have coming in and what your expenses are. Chances are that you will be surprised by how much you spend. Most people are not happy with the picture they see.

This is the foundation to your financial fortress. A financial review can be both practical and enlightening.


Wishing You Wealth in all its Greatest Forms

Alex

Real Estate Review - August 2008

Hello Friends,

Welcome to another edition of The Real Estate Review.

The Numbers Don’t Lie.

For the month of July, Orange County sales are down when compared to last month. The number of completed property transactions decreased by 85 homes (-3.8%) from last month, but are up year over year.

The current total inventory of available properties spanning all price brackets for August 2nd showed 14,501 available homes for sale in July, up by 1,303 (+9%) from last month. This is due to reduced monthly sales and slightly more added inventory.

The total number of properties sold in the month of July amount to 2163, Down by 85 homes (- 3.8%) from last month at an average sale price of $756,000, which was a decrease of $43,254 (-5.4%) from last month. From a longer term perspective, the average sale price for Orange County was Down by $182,139 (-19.4%) for the one year period.

Is this the BOTTOM?

The market for Orange County real estate appears to be slowly regaining its footing. The number of completed property transactions is up from a year ago. A sign of strength can be seen from the shore since bargain buyers are coming off of the sidelines. The price declines are not as steep, and the number of sales increasing slightly. It should be noted that some cities are obviously doing better than others.

For the month of July, there has been more of the same, with stronger competition for properties on the lower end of the price spectrum below $650,000. The bottom line is that there are bargains out there to be had if you are positioned correctly to take advantage of this market.

Wishing You World Class Wealth,
Alex

Housing Prices Decline Across the Pond

We aren’t the only one’s suffering from falling real estate prices. British properties are down 8.1% on an annual basis, while the number of real estate transactions have decreased to an all time low.
They are also dealing with fears of a recession with key economies being affected.

Much like the United States, retailers have been hit hard by reduced consumer spending.

Read the full story here.

Why the poor stay poor.

One of the major reasons why the poor stay poor is that they fail to take advantage of low cost or money saving opportunities available to them. A study was published by the Center for Studying Health System Changes found that of the 35.4 million people without health insurance, 20% declined coverage from their employers. People often underestimate how likely it is that they will become ill and the associated expenses with illness until it is staring them directly in the face. Another Merrill Lynch study found that 41% of their employers say their employees don’t participate because they can’t afford it. While, that may be true for some of the cases many others will spend $2,000-$3,000 on cigarettes or lottery tickets.

An International Study showed that if you grew up in a low income household, there was a 50% chance that you would become a low income adult. Although this study had far reaching effects and cast a dreary perspective on the future, I remain optimistic. When the odds are 50/50, then you have a classic “glass half full” or “glass half empty.” You could cite that you have a 50% chance of living as an impoverished adult, but instead I choose to see that you have a 50% chance of overcoming a childhood filled with lack and having the possibility of living a life full of prosperity.

Wishing You Wealth in all its Greatest Forms

Living Longer or Living Better?

There’s been a shift in the media attention on aging over the last twenty years. Whether you believe the media is a reflection of nation or not, one thing is true…the focus has changed. As recently at fifteen years ago, the big push was finding out ways to live longer. They showcased new options for preventative measures, medical procedures, and let’s not forget new prescription drugs. The landscape of aging was entering a new frontier. Little did they realize that living longer carried a whole new set of issues. Sure, now you have a longer life expectancy, but with it came a dramatic realization that living longer isn’t a benefit if you can’t enjoy that time. In recent years, the shift in consciousness has been on living “better.” This ranges from eating better to improving brain function. Health food stores and farmer’s markets are more popular than ever with Wild Oats, Whole Foods and Mother’s Market catering to those wishing to live “consciously.” I wouldn’t credit all the push toward a “greener” world with the baby boomer generation, but they have certainly helped fund the growth and expansion of it.

Wishing You Wealth in all its Greatest Forms

Lottery Retirement Plan

While purchasing my SOBE tea at the liquor store, a man told me that this was going to be his lucky day. He had worked hard all his life with nothing to show for it and he was going to win the lottery. This interested me intensely since everything in my training as a financial advisor doesn’t include the lottery as a viable retirement plan. Hmm…I thought to myself...I wonder how many people are depending on the lottery for retirement. Well, an article on MSN stated that 40% of people with incomes between $25K-$35K and 50% of people with incomes between $15K-$25K believe that their retirement nest egg will come from the lottery.

All I can say is that is startling. So if you subscribe to that belief you have a 1 in 135,145,920 of retiring well from your lottery winnings. To increase your chances, you might want to stop by a psychic that will not only tell you amazing facts about your past, but also what the next lottery numbers will be. Luckily, I have my six numbers clearly printed on the back of my fortune cookie message.

Good luck to all you players.

Wishing you Wealth in all its Greatest Forms.

Socially Secure?

Social Security was created by Franklin D. Roosevelt as part of his plan to enhance economic security. Signed into law in 1935 to pay workers age 65 or older a continuing income. According to the White House there were 16 workers to support every one Social Security recipient during the Truman administration. Today, there are only 3.3 workers supporting every beneficiary. By the time the youngest workers turn 65 there will only be two workers supporting every beneficiary.

Social Security is a big source of income for the elderly, providing the majority of income for two thirds of beneficiaries and all of the income for 20% of them. Many people believe that Social Security will disappear and be unavailable for today's youngest workers. It may still be around, but there's a good chance that benefits will be reduced or the qualifying age will be
increased.

The bottom line is that we will be facing a much different retirement than our parents and grandparents did.

Wishing You Wealth in all its Greatest Forms

Real Estate Update - July Independence Day Edition

The real estate market in North Orange County is starting to see some signs of life. Condo sales are up 5.5%. The seasonal buyers trend is up due to many children being out of school, which allows families to consider moving to new homes. It's not uncommon to see families led in caravans by their fearless agents, with the entire family in tow. Many properties that are listed aggressively in relatively good condition are going into escrow in less than two weeks at premiums above their asking price. Buyers who are looking for a bargain are coming off the sidelines. The majority of the properties being viewed are short sales and bank owned properties.

Short sales and bank owned sales currently account for nearly 50% of the pending sales and about 37% of the current listings in Orange County. The inventory of new homes has been falling an average of one hundred per week in comparison to increases of two hundred per week, the same time last year. This may signal that the first wave of foreclosures due to increased mortgage payments may have already worked their way into and through the market.

In a recent Orange County Register article, citing Economists at Global Insight believe that Orange County real estate is now 5.2% undervalued. Whether or not you buy into the media, local activity and interest has increased.

Wishing You Wealth in all its Greatest Forms

The SECRET Benefit of Failure...

Today, I spent some time thinking back over all of my failures and their lessons. It’s great to fail, in fact with failures in hand we are provided valuable lessons. Every single man, woman and child out there has probably failed at least a few times. I don’t know a single person who went from crawling as an infant to walking on their very first try. I also notice there are very few adults who continue to crawl instead of walk.

For me the failure that to my mind is when I was 15 years old and I decided to go into the sports card business. I was offered a “good deal” from someone that was relocating and wanted to sell the cards at a “deep discount.” Basically, here was a man that was going out of business who was looking for someone to purchase his inventory in bulk. Enter a 15 year old teenager who was bright eyed and bushy tailed. So I purchased tens of thousands of cards of differing values. I was getting a good deal when he showed me how to price out them in the “Beckett” card value guide. Yet, I had no idea that people weren’t really willing to pay the prices in the book nor that demand for sports cards was being replaced.

I ended up selling the majority of cards off in bulk and recovered about half of my money and gave the cards to whoever wanted them. The market for cards was quickly shrinking with the quick growth of the video game industry and Internet. Needless to say, that was my first lesson in business. The lesson I learned was to avoid taking anything at face value and only to buy from those you trust.

The sports card business had been steadily fading out over the last 10 years. It was a fad that had a really great run, but you should always know your market and see what’s coming down the pike in the way of alternatives. I later relearned that in my business classes.

Wishing you Wealth in all its Greatest Forms

‘W’ before ‘H’ in the Financial Alphabet

We all know that the letter “H” comes before “W” in the alphabet. At least I hope you learned that in public school. When it comes to financial planning these days, it seems as if the HOW comes much before the WHY. The HOW can be one of the myriad of financial products that are out there. There are 529 plans to fund college expenses, annuities that may guarantee income streams, and insurance to protect one’s family. Yet, in practice some advisors are familiar with only one product and recommend it to all their clients…putting the “H” before the “W”. The question why needs to be asked. Putting together a college fund for your child? Saving for retirement? Protecting your family? Or it may be a mix of all of them. The key to a Successful financial plan is figuring out the WHY, then the HOW part will be a walk in the park.

When I was growing up, my family doctor was one of the nicest people I ever met. I think I visited him probably 20 times between the age of 5 and 10, but the diagnosis was always the same. “It’s your allergies, take some Claritin.” I think my leg could have been broken and he would have told me to take some Claritin. He was an allergist, but that was his specialty. On a side note, my allergies are much better.

Wishing you wealth in all its greatest forms.

A lesson in perspective

The other night I was in downtown Los Angeles, relatively late in the evening, celebrating a friend’s birthday. For me L.A. always seems to have plenty of homeless people, at least in comparison to what I typically encounter in Orange County. I asked two homeless people, the same question, which was, “How would you describe the City of Angels?” The first man I asked told me that people are sneaky and dishonest and that it’s a miserable world. The second man I asked told me that the city was friendly and helpful. How could two people who were both homeless, wore the same ragged clothing and lived in the same city have such different perspectives on life? I believe this is just another lesson in perspective.

In my life, I have always recognized that I have always found what I am looking for. Meaning, that if I am looking for all the things that are wrong, I will search until I find things that are “wrong” with my life. On the flip side, I have also noticed that when I look for all the beauty and opportunity in this world, I find it. Our expectations are magnetic and whether on a conscious or unconscious level, what you expect, you fulfill.

Wishing You Wealth in all its Greatest Forms.

Real Estate Review for June 2008

Real Estate Report for North Orange County – June 2008

In the last 30 days, the demand for local real estate has relaxed a bit. In visits to local open houses, many agents reported that very few people had been visiting their open houses. These are properties listed at full potential value and not short sales. The majority of the local supply is in short sales since homeowner’s who don’t need to sell will wait for better prices.

For many first time homebuyers, short sales will be the way to go. Properties that were valued well over $550,000 as recently as 12 months ago can be had at prices between $350,000 and $400,000. Much of this has to do with the “foreclosure effect.” Many properties in north Orange County are valued lower due to most recent comparable sales being from auctions or short sales.

Some local homeowner’s are even “upside down” meaning that they owe more than the property is currently worth. Since the homeowner’s wouldn’t be able to fetch a price greater than the loan balance, lenders are making exceptions and allowing them to sell for less than they owe. Reports continue to abound about how property values are decreasing at a dramatic pace. It should be recognized that the majority of properties sold are in the lower price range since financing is easier to obtain and these properties are becoming more affordable at a quicker pace.

There are many properties that will be selling at “discounted” prices, but with foreclosures and short sales, the onus is on the buyers and their agents to investigate the property thoroughly. In representing my buyers, I currently have offers at lenders for properties at $350,000 that sold for $575,000 one year ago. There are many ways to get a good deal in the market, just make sure that you are well prepared.

Wishing You Wealth in all its Greatest Forms.

How you can earn 18% on your money guaranteed?

Only a small fraction of people contribute to a 401k and many that do have little understanding of the investments within their portfolio. With that being said, here's a concept that many people understand...the concept of compound interest. It can work for you if you are invested in a Certificate of Deposit, Bond or even a Mutual Fund that has been performing and you reinvest interest or earnings. For many Americans the concept of compound interest works against them as in their credit card debt. When you make the minimum payment, the jeans you paid $80 for are accruing interest, but that very next month, the interest on your $80 jeans is accruing interest as well. So you are not only paying interest on the jeans, but you are paying interest on interest. Credit card debt can quickly spiral out of control not only because of lax spending but due to the compounding effect of interest against you. The stock market has been exceptionally volatile lately, which we may need to get used to. But there is a way, that you can earn 18% on your money. Pay off the balance on a credit card at 18% interest.

Some people keep their money in the bank earning 1.5%, while paying 18% or more on their credit card balances. By paying off the balance, you are effectively earning an 18% return on your money. That is a return that anyone that has been invested in this market would be ecstatic about.

Wishing You Wealth in all its Greatest Forms.

Stu vs Steve Part II

Now let’s take a moment and look at Steve.

Steve is 47 years old, being raised in the family electric business, he never attended college. At the age of 21 he began working for a small grocer earning $29,000 a year. He always put 6% of his paycheck into his 401k and received a company match of 75%. Today, continues with his 6%, putting in a little more when possible. His job has never paid more than $75,000. He owns a small house in Valencia and drives a Honda Accord. Due to the power of compounding, he has over $850,000 in his retirement account. He still has almost 20 years of compounding before he is going to retire. By that time, he should have amassed nearly $2 million and with his modest lifestyle and house being paid off, he will be able to live out his retirement years at a great degree of freedom with vacations and spoiling his grandkids.

These are two different people in very different circumstances? Who do you want to be? Stu or Steve? If you want to be more like Steve and less like Stu there are some basic steps you can take today to make that possible. I will cover those in my next post.

Wishing you wealth in all its greatest forms.

Stu and Steve Part I

There are two people I know personally that are showing me finance lessons that I never learned in the classroom. One is now retired, while the other has almost 20 years until retirement. I know them both but their names aren’t really important… let’s call them Stu and Steve. Today, I will introduce “Stu” .

Stu is 76 years old…has a business school education and a law degree. He is one of the kindest, honest and most generous people you will ever meet. He has worked for banks and was also a practicing real estate attorney. He has worked for himself and paid very little into social security over the years, believing that he would save on his own. He has had jobs that paid $15,000 a year when he was young to $150,000 a year in his mature years. Today, he is receiving $672.00 a month from social security. He is “living” on a very small amount and I use the term living very loosely. He doesn’t own a home and instead lives in a bachelor apartment in Los Angeles.

It’s unfortunate…but the hourglass sand has run dry for Stu. In his retired years, his focus should be on relaxing since he has spent his entire life working. Tomorrow, I will go over Steve’s story.

Wishing you wealth in all its greatest forms.

What a waste.

I was recently sent a link to an article in the San Francisco Gate about waste. You may have heard of this story, since Ari Derfel was all over the airwaves for good reason. He actually saved all of his trash for an entire year to make a point. Initially, it seems like a pretty crazy idea, but how easy is it for us to ignore how much trash we create in our daily lives. For Ari, its around 96 cubic feet of trash. Things in small amounts rarely seem to impact us very much. Yet, they quickly gain significance when taken over a longer period of time…like a full years worth of trash. Last year, our garbage people (read waste disposal) went on strike for two weeks. Unfortunately, the week earlier I had decided to do some cleaning up and my huge trashcan was filled to capacity. I still had my usual weekly trash, but with nowhere to put it, I had purchased an additional trashcan to keep it out of the sun. Every time I went outside, I stared at my trash and just wanted it to be gone. It actually made me think of how much waste is created and if I could reduce any amount of it. I did a pretty good job of sifting through and putting all recyclables together.

After that week, where I had garbage just sitting around…I started to rethink things a bit. These days, I do my best to buy just enough, eat what I buy and waste as little as possible. A couple of ideas on reducing waste are:

1. Use and re-use gift bags instead of wrapping paper that can’t be saved
2. Bring a backpack to carry your items home when you go shopping
3. Recycle bottles, cans, and all paper products

I often believe that one person can’t make a dent on the collective consciousness of a nation. Then again, Ari has definitely made a difference and brought some real awareness to the issues at hand. I now know that if I change and that encourages others to change…then the we can collectively make a difference. Wishing you wealth in all its greatest forms.

Retirement Planning: Generation X

Generation X is defined as those born between 1965 and 1980. In speaking to friends and colleagues, it’s pretty obvious that we are not a generation of savers. Many of us are going to face greater challenges than our parents. It's going to make you wish that all you had to do was carry your sister uphill in the snow both ways. In addition to the high cost of mortgages, student loans and credit card debt, the pension of yesteryear is missing in action. For my parents, the pension is going to be the foundation for my parent’s retirement. It will be augmented by passive real estate income and IRAs. Most pensions have been traded in for the 401(k). The 401(k) at most companies comes in one flavor, but many choices…maybe even too many. This shifts the risks from the company to the employee. Trying to plan can be mind boggling...but you have to start somewhere.

The million-dollar question is “where and how do we start?” Considering that nearly every time you turn on the television, get on the Internet, or even open a newspaper there is an advertisement for the newest online brokerage. The financial arena has become exceptionally confusing. There are stockbrokers, financial planners, and even financial consultants at the bank. We all know that we should plan for the future…but the who, what, when and how questions remain.

I think the first step is to find out what your retirement means to you. For some retirement means that they can just sit on the back porch sipping lemonade, while for other’s it’s that time when they are finally able to travel and do all those things they have put off. Imagine what you want retirement to look. Once, you know what you want it’s easier to get there. “Those that don’t know where they’re going will always get there.” Then you should take some time to interview financial professionals who help you clarify your vision, time frame and other specifics. The third is the easiest…creating a plan that doesn’t financially cripple you today, but provides the greatest freedom when your only job is to enjoy your life, on your terms.

The first part is the most difficult. Only you know how you want your future to feel. The second part is just asking the right questions to the right people. The third part is simple once you have a trusted partner in your life. Keep in mind that there are always people out there willing to help you, but you have to stay committed.

Wishing you wealth in all its greatest forms.

Real Estate Review for May 2008

It seems as if every nightly news report has a section titled “real estate crisis” or something to that effect. It has been widely speculated that the S&P/Schiller Case Index is skewed since it tracks prices in only twenty major markets, of which many have had the most dramatic price appreciation and the most dramatic price compression. The S&P/Schiller Index claimed that median prices were down 12.7%, whereas the National Association of Realtor’s reported that the median price was down only 7.7%. These figures may have an undeterminable margin of error and inaccuracy due to the nature of the market. If more properties are sold in a lower price range than in a higher price range, the median price will decrease. With the market for jumbo loans being nearly frozen, it makes obvious sense that many properties being bought and sold will most likely come from the lower end of the price spectrum. So be prepared to question the very general figures that are being disseminated through the media and have a trusted realtor review comparable sales in your area since every market is different.

Keep in mind that I am not stating that prices aren’t decreasing. Seller’s are finding out that buyer’s are not willing to pay “2007” prices. There has been downward price compression, but seller’s who have the luxury of pricing their homes at reasonable levels are garnering offers at asking prices or higher. Even bank short sales that are priced below market prices are receiving a lot of attention. A La Palma property priced $50,000 under market value received thirty eight offers in a period of six days. What is unfortunate for many home sellers may be a boon to many first time buyers.

Buyer’s who have been priced out of the market for the past few years are beginning to take notice. With interest rates still at relatively low levels and a large inventory of homes, the right time may be right now. The bottom line is that new buyers should work with a realtor to find out what opportunities are available in their local area.

Wishing you wealth in all its greatest forms.

So easy, a chimp could do it...

I was thinking about the TV show “The Big Give” and was just googling some information and came across this article online about altruistic chimps.

I was thinking about how people that you don’t know and will probably never see again can make your day. Since I was a child there has always been a “dollar menu” at fast food restaurants. When I was ten, I went to Mcdonald’s with exactly one dollar. I ordered a Big Mac for $0.99 and then was asked for $1.06. I had no concept of taxes at this point in my life. Anyways, I was a pretty shy kid, and felt embarrassed since I didn’t have enough. Here I am looking at my puny dollar then at the $1.06 digital reading across the screen…then at the cashier…then back at my dollar. Then out of nowhere, this lady steps in front of me and pays for it. She told me to put my money away. The kind gesture really resonated with me.

Have you ever done something for someone, without expecting anything in return?

I mentored a child for eight months. I was under the impression that all I had to do was spend a couple hours each weekend doing normal things. We went to the park, the arcade, and to miniature golf. He was a kid that had nearly everything going against him. The more time I spent with him, the more I realized that we are all born with different opportunities and disadvantages, but it’s what you do with them that defines who you are as a person. It was such a fulfilling experience that I highly recommend it for the right person. The bottom line is that the experience was the opposite of what I had expected. I was trying to make a difference in his life, but he really made a difference in mine.

For me, whether I am helping someone or being blessed by another, I get a feeling of warmth and kinship with others. I feel that people are born with the desire to help others, they often just don’t know where to get started or they feel like they don’t have enough time, money or both. There are many things that you can do that takes relatively little time and no money. Locally, I would look into L.A. Works or Volunteer OC for starters. Maybe it is a coincidence, but L.A. Works has a "Monkeying Around" event on May 4th.

Wishing you wealth in all its greatest forms.

Become a homeowner...step 1.

If you are currently a homeowner or are going to be in the market for a new home, you may be able to appreciate this. My goal as a real estate broker is to help you purchase properties with unified perspectives. With additional guidance from financial advisors, tax advisors, you can be better prepared to understand your opportunities and make informed decisions on possibly the largest investment you will ever make.

We are currently experiencing a pull back in real estate prices due to more restrictive financing options, general concern about the overall economy and numerous foreclosures and “short sales.” We may have been able to avoid today's current environment if just a little more work was done upfront.

The first step to owning a house is budgeting. I believe that all potential homeowners should do a Personal Financial Statement (PFS). This statement covers the big financial picture, including all income sources, personal expenses with insurance and other investments. It provides a background on the true state of your finances. You may need to restructure your finances, but at least you are aware of what adjustments need to be made. It has typically been an eye opening experience. We rarely know how much we really spend since we have limitless access to credit cards. This is a great opportunity where your agent can learn about other trusted advisors in your life, including tax advisors, financial advisors and maybe even legal counsel. These very important people should work together to provide a seamless and unified plan. The tax accountant can help you review the potential benefits of mortgage interest deductions, whereas the financial advisor may have very clear investment goals that need to be maintained for a prosperous retirement. I feel that if more agents had performed these with their clients, less people would be losing their homes.

Many real estate agents don’t have a background in finance and would not feel comfortable with the personal financial statement. You may go to your trusted financial advisor who may already have your financial analysis on file. I strongly believe that agents should be in touch with other professionals to help clients purchase a home that truly maximizes a person’s values and goals.

Wishing you wealth in all its greatest forms.

Certainly Uncertain...

These are definitely uncertain times. I work 20.7miles from my home and my car gets around 20-22 mpg and I paid $3.79 per gallon of gasoline this morning. It costs me nearly $8.00 to commute to and fro. You may have noticed people moving faster these days, it’s not because they are more in shape…it’s actually a result of their wallets being lighter. Inflation is now in full effect.

From gas to food, everything is more expensive. Food inflation is growing at the fastest rate since 1990. Since I enjoy purchasing things in bulk, I buy my eggs at Costco, but even there the prices have risen quickly. So far, egg prices have increased 40% and milk prices have increased 26%. You aren't even immune if you are vegan, corn and soybeans are prices are also on the rise.

It is simply the perfect storm for many retirees. Falling home prices and a volatile stock market has not only shaken their confidence, it has shaken their retirement portfolios.

Is this a doomsday prediction? Hardly.

There will be booms and busts in both housing and the stock market. The thing not to do is “suffer in silence.” It makes little sense to worry and spread fear when there are simple things that you could be doing right now. In these times of flux, take it as the opportunity to review your budget, create the savings plan that you have been “planning” to do. When you get your stimulus check, put it towards your rainy day fund and put it in a high interest savings account. If you have been putting off starting a retirement account for yourself, do it now. You can contribute for calendar year 2007 to your Roth IRA until April 15. Imagine never having to pay taxes again on that money ever again. The government is giving you a golden opportunity, take it.

If you can learn to budget in these difficult times, you will be well prepared when things turn around. Until that stimulus check comes in, I hear that the Mcdonald’s Dollar Menu is looking mighty good.

Wishing you wealth in all it's greatest forms.

On Wealth

What's the definition of wealth? $100,000 , $1 million , $100 million , $1 billion? I hope that you found your number in there. Being wealthy means different things to different people. To a child who has never had his own pair of shoes, $100 might be his idea of being wealthy while growing up. Whereas, a child that has always had a life of lux and privilege, may believe that being a millionaire is not only the norm, but anyone below that financial status is poor. Some people consider themselves wealthy if they have $50 more than their cousin, while another may only consider himself wealthy if they have a beach front property. The bottom line is that wealth is a relative concept.

What is not a relative concept is that all people want to improve their condition of living. I believe the heart of human nature is the yearning for advancement. For example, if you are homeless, you would like to have shelter. If you live in an apartment, you would like to live in a home. If you live in a home, you would like to live in a larger home, in a more desirable neighborhood, closer to the beach etc... We live in an amazing country where hard work, dedication and innate talent can make these things possible...for that I am grateful.

From the "Google Earth" view, wealth means very different things to different people. It can range from health, friendships or even material comforts. How you can tell which one is important to you at this moment is finding out where your current energy is focused. We are constantly evolving into the people that we are meant to be. There have been years in my life where my energy was spent only on acquiring material comforts and other years where friendship and health took the reigns. For most people, the focus only returns to the peripheral areas when neglected to the point of distress. I have heard many stories, where a multi-millionaire stock broker is struck by serious heart attack, only then does health become priority one. Other times, cliches like "it's lonely at the top" come to mind. Where an individual has spent so much time and effort making money and one day they come to the realization that they have a network full of acquaintances, but no real connections with friends. We as human desire to be in balance, yet with all the daily noise, it is easy to forget what is truly important to us. Here's to living in the greatest wealth balance possible.

Wishing you wealth in all it's greatest forms.