The Henry Charitable Foundation

Newsletter

July 2010

As you can see by the chart, money invested in the Dow 30 stocks Jan 1 2000 to June 21 2010 for over 10 years had No Gain!!

I believe the market should be timed using VectorVest for balanced investments and that for some of your equity investment that you hold should be hedged with investment that should do well in our current market - Gold, silver, oil and gas, hedge stock and special stocks.

Below is my hedge fund that I do not time. It is in a Roth IRA so no taxes ever!!

AGQ - Proshares Ultra Silver

BEXP - Brigham Exploration Co.

COP - ConocoPhillips

DIG - Proshares Ultra Oil & Gas

FRO - Frontline LTD

ITC - ITC Hldgs Corp

KOG - Kodiak Oil & Gas Corp.

NOG - Northern Oil & Gas Inc

OXY - Occidental Pete Corp

XOM - Exxon Mobil Corp

As you can see, a lot of proshare Ultra ETFs. Ultra means they move 2 times as fast as the underlying sector. All are doing well except for DIG which I bought too soon, but I plan to hold as I feel the prices for Oil & Gas will start to go up. COP, XOM & OXY are giant oil companies that will do well in this market. FRO is the 2nd largest tanker company which I feel will do well and the company pays high dividends. ITC is a transmission company that works on bringing wind powered electricy from North Dakota to the Twin Cities and Chicago. BEXP, KOG & NOG are holders of large amounts of land drilling rights in the Williston Basin in North Dakota, which many feel is bigger than Texas is for Oil & Gas.

As you can see, this is a hold for the long term. I may take some profits off the table or buy more in market down turns. I will update each month and you can email for any changes made during the month.

Lastly, I want to show you a few more charts that will not make you feel good.

The first chart shows that the number of jobs has not increased in the USA for 10 years.

The second chart shows the countries that are close to default. Look at 9 & 10 which are the states of Illinois and California!!

New home sales dropped to a all time low.

The 3rd chart shows commercial real estate loans are rising very high. Over 7% on 30 days past due.

The fourth chart is good news for our hedge fund. Gold has tripled in the past 5 1/2 years.

The USA has to change in spending, size of government and help create jobs in Small Business.

Please get out and vote the people out that have caused these problems.

Global warming has not been proved, so we don’t need Cap & Trade (I call it Cap & Tax) which will skyrocket the price of energy. This November is the first chance to start the fix which can be finished in 2012!

God Bless America!!

June 2010

I have made changes in the Planning section that should help you increase your investments into your retirement plan. I think you will find it of value.

We are out of the market and Vector Vest’s call out was not totally right, as we gave up some gains, but we did not lose any principal. The Hedge Fund is about even, but I feel what we own is the right direction. The spending will tear down the dollar and cause inflation. Canada just raised their interest rate which  the US will have to do soon. Gold, silver & oil & gas are what you should be adding on to your retirement plan. The Hedge Fund is the stock side of this and using Blanchard for bullion coins (Canadian Maple Leaf and US Liberties). You should also start collecting investment grade coins. Susan Sierra can help you with this part.

I advise you to stay with US coins like Double Eagles and Buffalos, encased and graded.

Americans are not very good at saving. It’s right at 4%, but it’s coming down. We need savings of 10 to 20% for retirement alone. We are not living within our means.

The reason for a slow economy, loss of jobs and volatile stock market is the direction our government is taking. I cannot recall a time when the government was not listening to Americans to this degree. Everything being done is delaying the recovery. Small businesses (70% of the jobs) will not hire people with this much up in the air!! The government is on a far left wing agenda and I believe what  is being done is not what the Founding Fathers wanted us to do. We are not following the Constitution and are turning the USA into a European-like country. I am hopefull that Americans are waking up and I am hoping that the direction will change after the November elections. I would love to have you send me emails with your thoughts.

Please don’t let the recession and confusion stop you from investing for your retirement. What I am showing you with this website will work over time. I feel that America will go back to its roots in the future. Remember, life and liberty are rights from God and are protected by our Constitution.

This gives you the chance to pursue happiness with the results left up to you.

Freedom is not Free!! The results of your work is up to you!!

God Bless You!!

May 2010

This month I will talk about retirement in general. Approximately 70% of baby boomers that will turn 65 over the next 10 years do not have enough saved to retire comfortably.

Retirement has been based on a “three-legged stool” of Social Security, pensions and personal savings.

1) Social Security is unfunded by trillions of dollars and is unsustainable. The fixes will make this a bad deal for Americans.

As you can see, the shortfall is starting 7 years sooner than expected.

2) Public and private pensions are threatened. The public pensions are unfunded by 728 billion and this will rise 1.2 trillion in 4 years. Fortune 1000 company’s pensions are unfunded by 225 billion. The amount of money put into pensions for 2010 is 1/3 the amount done in 2009.

3) Personal savings have been very low for the last 10 years.

Personal retirement savings is the answer along with matched 401K’s and IRA’s (Roth is best). You should be saving 10 to 20% of your income for retirement. I can’t think of anything worse than reaching your Golden Years without enough savings for retirement. This is why I put this website together to help you invest the savings you must do.

Let’s talk about taxes. As you know, the Bush tax cut will end this year.

As you can see, the top rate will be almost 40%. Capital gains will jump by 1/3 and dividends will double for the top brackets. The capital gains and dividends changes are the biggest problem for retired people. That’s why variable annuities are a great way to save for retirement. See what is going to happen to you next year.

I want to show you the final study done on who pays the taxes.

As you can see, the top 1% pay 40% of all income taxes. The top 10% pay 71% of all the taxes. The bottom 50% only pay 3% of the taxes. This is not fair at all. Taxes should be on spending with the same rate for everybody. The country will not work well with the top 10% paying 71% of all the taxes.

Now I hope you can see why retirement savings is the most important thing you can do. If you can’t save 10 to 20% of your income, then change your lifestyle. Lower spending and see how much your home is costing you.

I am here to help you so use this website as much as needed.

April 2010

I now have the Hedge Stock Account set up with ETrade. I have 5 ETF’s and 2 stocks as listed below. I am looking for a few more.

• AGQ - Proshares Ultra Silver
• BRK.B - Berkshire Hathaway
• CSM - Proshares 130/30
• DIG - Proshares Ultra Oil & Gas
• IEP - Icahn Enterprises
• TBT - Proshares Ultra Short Treasury 20 Year Bonds
• UGL - Proshares Ultra Gold

The EFT’s give me hundreds of stocks in gold, silver, oil and gas, 130/30 and short 20 year treasury bonds. I added Berkshire Hathaway and Icahn Enterprises to have Billionaires manage some of my money. I will  not time this account at this time. If I change, it will be on the website. The VectorVest Top 10 VST (value, safety & timing) stocks and the ETF for Global Asset Allocation are set up and they will be timed by VectorVest.

The economy is getting better but it will be jobless until the US Government lowers taxes on business and stops all the major changes that hold back businesses from hiring new people. The US has been on this path for over 50 years, but I am hopeful that the American people have awakened. The Founders of America wanted smaller Federal Government and the main power with the States.

I have a small booklet that I keep near me that contains The Declaration of Independence, The Constitution and Bill of Rights. I feel what the Founders did leaped us 5000 years with the best form of government. The whole basis of America is personal responsibility. We do not have rights to healthcare, welfare or retirement. It will never work to take from the haves and give to the have nots. The Constitution is not a living document. It is the rules that the US should follow and if a change is needed, then amend the Constitution.

Change

Time shares - rule number 4 is to only own time shares that are part of many resorts owned by the same company so that exchanges can be done with the time share company directly.  Exchange companies like III & RCI have a conflict of interest as they make much more money in rent than exchanges. We have 3 time shares with:

• Royal Resorts
• Westgate
• Diamond Resorts

This gives us more than enough options for vacations without using Exchange companies.

Finally, this website is FREE and you should use it. I am 70 years old and retired. I make NO money off of this website. Your name or email address will NOT be given to anyone. The website is paid for by the Henry Charitable Foundation which is a non-profit 501-C3 Foundation funded by me. This is a hobby for me. I would like the website used more by you emailing me questions. The reason I just want your phone number is for hard questions that would require talking to you. Your phone number is not given to anyone. I am a multi-millionaire and I want to help you in setting up the best possible retirement plan. My life has been so blessed that I want to give back.

Business owners can use this website as a benefit for your employees at no cost to your company or your employees. Also, you can recommend this website to family and friends - this could change their lives! I manage my own retirement so the time I spend is not that much more anyway. Please send me an email ASAP with your questions and your phone number. I will help all I can and remember, this is FREE! God Bless.

March 2010

I feel more than ever that everyone should have a hedge account with ETrade. My first idea was to own gold, silver, oil & gas and special stocks. After VectorVest called out of the market after 1/26/2010, I decided to sell the stocks I had and start over with a better idea.

I have now set up ETF’s instead of stocks in gold, silver and oil & gas. These ETF’s are ultra ETF’s with Proshares and they use leverage to get 2 times the growth. Example, if gold goes up $100, the ultra ETF in gold will go up $200 - same for silver and oil & gas. Proshares picks the stocks, not me, and I feel it will be years before the dollar stops losing value and no one can do anything about inflation.

Also, Hedge Funds (the good ones) have set up investment systems that can do good in any market. In order to invest in a Hedge Fund, you have to be a millionaire and they have very high minimums to get in.

Now there are ETF’s and ETN’s (Exchange Traded Funds and Notes) that are doing the same things as Hedge Funds. I’ll give you one example - 130/30 idea. You start with the 500 largest companies and select the companies that are going down in value, and you use 30% to sell them short. then you pick the companies that you feel will go up. Since you now have 130% of your investment, you invest 130% in those companies. Example, 100,000 invested - 30,000 is in short sales which gives you 130,000 in cash to invest in the companies that you feel are going up. These systems were developed by PHD’s from MIT, etc. They work and you can do this automatic in ETF’s for very small amounts.

I set up my account in equal amounts of investments with the following ETF’s and ETN’s.

AGQ - Proshares Ultra Silver

DIG - Proshares Ultra Oil & Gas

UGL - Proshares Ultra Gold

TBT - Proshares UltraShort 20+ Year Treasury

More to come next month….

Also, there are ETF’s that short US Treasuries, which I feel is a no brainer, which I have added. Once again, this account does not need to be timed by VectorVest. I will just rebalance each month by selling and buying to bring the investment back in balance. (buy low and sell high). When I make any changes, they will be put in this section.

I know you will have questions on this one, so please email me with your phone number.

Stay tuned!!

February 2010

Changes

I am now out of the market in cash. I was out before Feb 4, 2010 and missed the 270 point drop which was over a 3% loss. This was due to VectorVest which I feel everyone should use. I have made changes to the Hedge Stock account which I will be using only ETF’s on Gold, Silver, Oil & Gas. This increases the safety and the gain. No more picking one company stocks and also less trading costs. Will update in March 2010 on what I will be using. I hope you can see the real value of this website as it is based on what I do with my own money. I am very proud of this website which has taken over 2 years to put together.

Finally, I am checking out a credit report/score service. Cost is $99 first month and should be used for another 5 months at $49 for each month. Believe it or not, I am using this service as it is almost impossible to deal with credit companies to change your report. I will be reporting on this later after I approve it for this website.

I will give you two examples of problems.

First, I had a credit card with Barclay Bank. They did not bill me for one month so I did not pay. When I got the overdue letter I paid what was due. I called Barclay Bank and tried to explain what happened. They wouldn’t do anything and reported the late payment to the credit companies. The payment overdue was less than $200.00, but the credit companies lowered my credit score, even with a 42 year plus record of no late payments. I tried to get the credit companies to change my report with no success.

The second problem is with American Express. I have a Platinum card and have been a member since 1970. American Express has no set limit and I have never been turned down for any amount since 1970. The credit companies get info from American Express which shows no credit limit. The credit company uses your highest balance as your credit limit as compared to your current balance. If that ratio is 50% or higher, this lowers your credit score!! I tried to explain this to the credit company and American Express with no results!! Dumb!! My floating credit limit is much higher. I also have a $95,000 unsecured line of credit with American Express which did not help raise the credit limit. Your credit score sets interest rates you pay on martgages, small loans and credit cards (maybe even getting a job). I hope this service helps people dealing wth this set of dumb stuff plus real problems. Stay tuned.

Lastly, I am searching for Oil & Gas investments that put us alongside the industry companies to get higher income for less cost. Stay tuned.

Debt vs Leverage

There is a lot of confusion about debt. There are 3 kinds of debt as follows:

1) Mortgage: As long as you have a home that you can afford with a fixed 30 year mortgage, that is leverage, not debt. When a loan is for something of value and that value will increase over time, that is leverage, not debt.

Let’s take a look at a mortgage. Let’s say your interest rate is 5.5%. This interest is tax deductable (5.5 x 60%). The real cost after taxes is 3.3% with a 40% Federal and State tax bracket. Please remember the tax rates will go up after 2010.

Over time your home value will go up more than 3.3% - the cost of the mortgage. The problem with sub-prime mortgages will be over in a few years as home values will bottom out soon. This problem would never have happened if everyone had bought a home they could afford with a 20% down payment and a 30 year fixed rate mortgage.  I would have a hard time paying off a loan at only 3.3%.

The rules are simple:

1. Put 20% down with a 30 year fixed rate mortgage.
2. Buy a home you can afford
3. No more than 25 to 30% of income counting all costs for the home.

2) Lines of credit/margin accounts used for investments are also good. Again, this is leverage, not debt. If you invest in a variable annuity and follow my advice, you should do, at least over 10 years or longer, an average rate of 9%. Look at the spread of approximately 5.4% gain for your investment. Lines of credit are about 6% x 60%, net is 3.6% - 9% = a 5.4% gain or spread.

This is what banks do. They pay lower interest on CD’s and loan it out on higher rate mortgages and credit cards. As long as the bank does a good job on underwriting a loan (the borrower can afford the loan), they should make a profit. Remember, loans used for investments are tax deductable on the interest paid (not debt, but leverage).

3) Credit card debt on spending for items that lose value. Spending money you don’t have on stuff you don’t need is real debt that should be paid off ASAP.

Always pay off the credit card with the highest rate first. Look for deals of low interest rates on another credit card and transfer the high interest credit card on that deal. Once that is done, start working on the next highest credit card. If you are paying off a high interest rate card (15-20%), that is a great investment that will free more money for your retirement plan.

The main reason people have this debt are:

1. Buying a home bigger than they can afford (remember, no more than 25 -30% of income)
2. Buying stuff they don’t need. Save up cash for things you want. Paying cash is the only way to go.

Remember, having a home you can’t afford and buying stuff you don’t need are bad. Making up a budget so you can cut waste is the best thing you can do. Going out to dinner less often and stopping credit card spending will set you free. Cutting back on spending will give you the extra cash to pay down your credit card debt and when thats done, start saving and investing that savings into your retirement plan - and start using the tools section to balance your plan.

Remember, the goal is to have a complete retirement plan which will give you the best time of your life. You have life and liberty from God as a right backed by our Constitution. Now is the time to pursue happiness with hard work and savings.

I came from a very poor family. My father died when I was 10 years old. My Mom worked 2 or 3 jobs while I was growing up. I did not go to college after high school. In fact, I did not get my college degree until I was in my 50’s. I planned on what I could do during that time without a college degree. I went into the insurance business with a large company (Prudential) until I really learned that field. Then I went on my own with a small agency and added investments over time which evolved into Financial Planning, which I really loved.

My company grew over time and when I retired at 60, we had over 750 Financial Planners all over the United States. We managed for mostly middle class families - over a billion dollars for them. I sold the business at 66 which added more to my retirement financial plan. I worked very hard over the years and put in a lot of 12 hour days plus many weekends. It did not seem like I did hard work as I loved what I was doing.

I always felt God would help me out during the hard times, of which I had a few. I have been retired for 10 years and have had the best time of my life. I have traveled all over the world and I really enjoy the work I do on my retirement website. We have a great family and 2 wonderful grandsons we love. If you put all this in your head and have faith, you can do the same thing I have done.

Please take me up on sending me  emails with questions. Please read the newsletter on 401K’s and Roth IRA’s that I can help you with.

Remember, you can be really happy while you are setting this up and doing it. There is no cost for me and I will not send your name or email to anyone unless you ask me to do that. This again is my way of giving back, and the tools section is what I follow in my own retirement plan.

See you next month.

January 07, 2010

Oil & Gas Investments

I wanted to explain more about oil & gas investments. We will talk about drilling first. This is the only investment that you can deduct expenses against your regular income to shelter that income from taxes.

On an oil & gas investment, you can deduct expenses between 75 to 85%. Let’s take an investment of $30,000.00 and use an 80% deduction. $30,000.00 x 80% equals a $24,000.00 deduction against your taxable income. At a 40% Federal and State rate, that would save you $24,000.000 x 40% = $9,600.00 in taxes. This reduces your investment to $30,000.00 - $9600.00 = only $20,400.00. This means the goverment will pay for 1/3 or more of your investment with taxes saved. I use M&W Financial as my lead company in oil & gas drilling investments. Contact information is in the Tools section.

The distributions are paid monthly and you can have direct deposit into your checking account (EverBank). The first investment I did late last year has already returned almost 6%, in just a few months. This is on the first well drilled and there are more wells to come online!

They partner with large oil companies which helps lower the risk. They also drill vertical and then horizontal in the formation. This increases the flow to double or more. Keep in mind that it could be a dry hole so there is still risk. In 2009, I invested $100,000.00 in 3 programs, which covers 7 wells and all of them have been successful. I should have all my money back in 2 years or less. I will use part of this income for retirement (5% of investment) with the balance saved in the money market account for new investments in 2010. The plan is to build up enough investments so that excess income will pay for the next years investments in oil & gas drilling. I want 10% of my net worth in this area.

Just to review, my investments so for with M&W Financial:

$100,000.00 invested with $80,000.00 in deductions saving $32,000.00 in taxes which reduces my investment to $68,000.00 from $100,000.00. Also, 15% of the income is tax sheltered. I can reduce my tax payments by $32,000.00 and use that savings plus the excess income to reinvest again for 2010.

Now let’s talk about Oil & Gas Income Investments

I use 2 companies for this section of my retirement plan. The first company is Chestnut Energy (Contact information in Tools section). They buy existing wells that are producing 10 to 15% income on the investment. They will then rework the wells to increase production to 20 to 25% on your investment. Once again, I take 5% and the excess income is saved in my money market account (EverBank) to use for future investments. The plan is to have 10% in drilling and 7% in income oil & gas investments. The income is 15% tax sheltered, so you get to keep more of the income. Chestnut is holding the wells for 5 to 10 years, then selling them. Their average has been for 7 years. The goal is to have enough excess income to pay for all the future investments with no money out of pocket. This takes 4 to 5 years.

The second company I use is Valor which invests in royalties in oil & gas land. They partner with large oil & gas companies that will drill that land. (Now using EOG Energy) We have no risk of drilling or owning the wells. We get a percentage of the production each month. This is the lowest risk investment in oil & gas.

In summary, this is an investment that can pay for itself over time with no money out of pocket in 4 to 5 years. Also oil & gas will go up in price. There will be periods of corrections where the price goes down but the long term trend is up. With the major fields in the world reducing production and increased demand, the price will have to go up long term.

Also, natural gas is a much cleaner fuel than oil or coal, so I see more and more power plants using natural gas. Big trucks can be converted to run on natural gas which is much cleaner than gasoline. We have the largest reserve of natural gas (in the USA and Canada) in the world. The price of gas will go up long term. Being on the production side of the pump is much better than the buying side for your car. This whole area is a hedge against inflation which is the biggest enemy of people on retirement.

Changes

See the Newsletter for January 2010 and the Tools section for Oil & Gas for more info.

Please email me with your phone number if you have any questions. This is an important section that you need to understand.

December 15, 2009

What’s Ahead?

The Federal Government is out of control. The spending has to stop. America is “Broke” and other countries are slowing on buying our Goverment Bonds. The FED is printing money.

What does all of this mean?

1. The dollar will lose value!
2. We will have high inflation that will start soon.

At this time I am in the market with the variable annuites and the first 2 investment systems with E-Trade. I am always in the market with the Hedge investments that I listed before. The values have gone down but I feel they will recover soon and over the long term will go up.

There will be swings in the market that in some cases will be good for our 2 stock systems. The Gold, Silver and Special Stocks are an insurance policy to protect your assets.

We will still have rallies in the stock market and Vector Vest will give us the calls in or out. I am looking at a few stocks that are not Gold companies but run by very rich and smart people.

November 23, 2009

Changes

Under Gold & Oil

I have added more stocks to the Gold & Oil portfolio. They are as follows: (See Feb 2010 changes)

• BP PLC (BP)
• Berkshire Hathaway (BRKB)  *Special Stock
• ConocoPhillips (COP)
• EOG Resources, Inc (EOG)
• iShares MSCI Brazil Index (EWZ) *Special Stock
• Market Vectors Gold Miners ETF (GDX)
• ING Asia Pacific High Dividend Equity Income Fund (IAE) *Special Stock
• Lihir Gold LTD (LIHR)
• Contango Oil & Gas (MCF)
• Occidental Petroleum (OXY)
• Power Shares Dynamic Energy  (PXI)

You will notice I added Berkshire Hathaway and others to the account. They are not Gold, Silver or Oil, but are managed by Warren Buffet or in a special market that I feel sets up hedges.

Timeshares

I wanted to give you ideas about timeshares.

1) Do not buy a timeshare as an investment. You will never be able to sell it for a profit.

2) Never buy timeshares from the developer as you will overpay by thousands of dollars. I recommend a company named Holiday Group, who sells timeshares in the secondary market. I bought a timeshare a year ago in Las Vegas on the strip for less than $3000.00. It would have cost between $15,000 to $20,000 retail.

3) Only buy a timeshare that you will use each year. Never count on renting or swapping.

4) If you follow these rules you will have a wonderful place to stay that is big enough to have family come with you. We have 2 weeks in Cancun, Mexico that we use every year (so for - for 25 years). We have 2 weeks in Las Vegas (on the strip) that we use in May & October each year. We have a new grandson in Denver so we stop off there for a few days both times each year.

HolidayGroup.com
Ask for Deb
1-800-930-9717

October 21, 2009

Gold & Oil

I am very concerned about the spending and printing of our money by Washington, DC. I feel that we will see the dollar weaken and inflation come back in the near future. I feel I have no choice but to build up hedges against those problems with mainly gold & oil. I have set up stocks and real gold which add up to 10% of my net worth.

For complete details, see the Tools & Changes sections of the Financial Plan. Questions are welcome.

Changes

I have made a change to my financial plan. I have added a 3rd account with ETrade in which I will put up to 5% of my net worth. This account will hold gold, silver, oil and special stocks in even amounts. The stocks will be rated a Buy by VectorVest when I buy them. I believe with all the printing and spending of money that Washington, D.C. is doing, it will cause the dollar to decline in value and these stocks to increase. I hold these assets and will not time them or take income out of them. These stocks are rising now because of the dollar. Also, inflation will start to rise in the near future. These stocks will be a hedge to protect the value of our assets.

The list of stock I now have (all in equal dollar amounts) are as follows: (See Feb 2010 changes)

1. Barrick Gold Corp (ABX)
2. Denbury Res Inc (DNR)
3. Encore Acquisition Co (EAC)
4. Goldcorp Inc (GG)
5. Rex Energy Corp (REXX)
6. Silver Corp Metals Inc (SVM)
7. Exxon Mobil Corp (XOM)

The next change I have made is to buy Gold Coins (Canadian Mapleleafs) from Blanchard and Co. I will take delivery of these coins and keep them in my safety deposit box. I plan to buy up to 5% of my net worth in this area. Again, gold is hedge against the weak dollar and inflation.

I have reduced the Variable Annuities from 32% to 26% and reduced 2 of my ETrade accounts from 24% to 20%, which has been already changed in the tools section of the Financial Plan.

Adding up the 5% in gold, silver, oil and special stocks - and 5% in Gold Coins, that is 10% of my net worth in hedges against a weak dollar and inflation.

Note: If you have any questions, please email (with your phone number) and I will answer them for you.

September, 2009

Roth IRA

Roth IRA’s are for most people the best option to take. If your company does not match your 401K, I recommend you fund the Roth IRA instead of the 401K.

I recommend you use the Prudential Variable Annuity for the Roth IRA with the 7% income rider. Many people will say not to use a Variable Annuity for an IRA. I feel they are wrong. You have approximately 70 options and switches are easy to do by emailing or calling. The people I use know the models, and this will be timed by VectorVest to lower the risk of buy and hold that millions felt in 2008 with huge losses. I time my Variable Annuities with VectorVest and I did not lose any money. Many people lost 25% to 35% of their 401K value. I use the “quote” higher risk models, but only when the market is favorable. I feel the risk is really less using this system.

The Roth IRA is not deductable but is tax free forever, even to your family after you pass away. This is a much larger tax benefit than the up front deduction - 2010 is the year to convert.

401K at Work

401K’s are much like IRA’s and I only recommend doing them if your employer matches your contributions. Your employer can set up a Roth 401K, and if they don’t offer let your boss know how much better that would be. No deduction up front but tax free forever. You should time your 401K with Vector Vest, and I can help you set up a model if you email, fax or mail me the options you have on your 401K. If the options are limited, I would recommend you not do the 401K. With employer match and good options, and possibly an option to a Roth 401K, you should do it. Don’t do more than the match.

Our Newsletter & Changes section will be updated at least monthly.