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08 Feb 2010 20:17
Winning Takes Guts
Posted on February 8, 2010 in Creating Income
NO GUTS, NO GLORY!
With one onside kick, on one of the most unexpected plays in Super Bowl history, The New Orleans Saints proved winning takes guts…
If you have been following me here or at at JayPeroni.com, you know I’m a die-hard New England Patriots fan. Since my Patriots did not make it to the Big Game on Sunday, I got to see the next best thing: the Indianapolis Colts lose! But even better than that was getting to see the New Orleans Saints claim victory after such hardship the past several years. Between the high crime rates and the disaster of Hurricane Katrina, most of America was rooting for some joy for that city.
Though nothing can take back the pain, loss and devastation from Katrina, but to see so many smiles and such joy on the faces of the many folks in New Orleans was priceless. In one of the most exciting Super Bowl games in the past decade (besides my Patriots’ three Super Bowl wins), yesterday’s victory proved winning takes guts.
Coach Payton of the Saints proved that to beat the overpowering Colts it was going to take stamina, smarts, and a good dose of risk – high stakes, high reward plays. There was no shortage in Super Bowl XLIV. From the risky call to go for it on 4th down inside the Colts 2 yard line to the gutsy onside kick to begin the second half the underdog Saints had one goal in mind: put it all on the line to give that hurting city something to be proud of.
The players knew what was on the line. They knew what it meant and they were willing to do whatever it took to claim victory. It was their way of saying thank you to the fans, their way of realizing how far the city had come in such a short time, and most of all they knew they could play a small part in helping New Orleans to rebuild what it had lost.
WHAT ARE YOU LIVING FOR?
What about you? What are you playing for? What are you willing to throw it all on the line for? If you are still living, God wants to do something amazing through you. You are not dead for a reason. You still have a purpose and He has a plan for your life. But are you just going through the motions? Are you investing your life into something worthwhile?
When I awake every day, I know it could be my last day here on earth. We have no promise of another day. Yet we take so much for granted. If today were your last day, how differently would you live? What’s holding you back? Just like the Saints put it all on the line last night, played with heart, and took chances, are you doing the same? To get where you want to go in life, anywhere worth going, it will take a whole lot of guts. Are you willing to risk it all for what you believe in?
What about that business you never started, that investment you never made, that person you never told how you really felt?… We only have so many chances to get it right. We can either dream about the life we wished we had or we can take some chances and work toward creating the life of our dreams – the choice really is up to you: No guts, no glory!
@JanSimpson Pretty good coming from our first Muslim President! 3 hours ago -
08 Feb 2010 00:44
Why do people use social media & not interact w/ their fans and friends?Seems too self serving & "old way" of doing biz.Good luck surviving! 4 hours ago -
07 Feb 2010 06:46
What in the world? Some churches incorporating cage fights to attract youth? http://www.theweek.com/article/index/105834/Fists_for_Jesus14 hours ago -
06 Feb 2010 13:22
Get Me Out of This 401k: Options for 401K Withdrawals
Posted on February 5, 2010 in Retirement PlanningRULES change for IN-SERVICE 401(k) rOLLOVERS
401(k)-to-Roth rollovers are now possible before age 59½.
A new possibility. Sometimes employees want to pull money out of a 401(k) before they retire. It isn’t always because of an emergency. Some workers want to make an in-service non-hardship withdrawal just to roll their 401(k) assets into an IRA. Why? They see lower account fees and greater investment choices ahead.
As a result of the Tax Increase Prevention Reconciliation Act (TIPRA), tax laws now permit in-service non-hardship withdrawals from 401(k), 403(b) and 457 plans to traditional IRAs and Roth IRAs before age 59½. Of course, the employeemust be eligible to take a distribution from the plan, and the funds have to be eligible for a direct IRA rollover.
This option may be very interesting to highly compensated employees who want the tax benefits of a Roth IRA. The income limits that prevented them from having a Roth IRA have been repealed, and they may have sizable 401(k) account balances.
Does the plan allow the withdrawal? Good question. If a company’s 401(k) plan has been customized, it may allow an in-service withdrawal for an IRA rollover. If the plan is pretty boilerplate, it may not.
The five-year/two-year rule also has to be satisfied. IRS Revenue Ruling 68-24 says that for an in-service withdrawal from a qualified retirement plan to take place, an employee has to have been a plan participant for five years or the funds have to have been in the plan for two years.
401(k) plan administrators may need to amend their documents. Does the Summary Plan Description (SPD) on your company’s 401(k) plan allow non-hardship withdrawals? If it doesn’t, it may need to be customized to do so. This year, plan administrators nationwide are fielding employee questions about rollovers to Roth IRAs.
401(k) plan participants need to make sure the plan permits this. An employee should request a copy of the SPD. If you ask and no one seems to know where it is, then call the toll-free number on your monthly 401(k) statement and ask a live person if in-service, non-hardship withdrawal distributions are an option. In some 401(k)s, an in-service non-hardship withdrawal will prevent you from further participation; be sure to check on that.
If this is permissible and you want to make the move, you better make an IRA rollover with the assets withdrawn. If you don’t, that distribution out of your qualified retirement plan will be slapped with a 20% federal withholding tax and federal and state income taxes. Oh yes, you will also incur the 10% early withdrawal penalty if you are younger than age 59½. Additionally, if you have taken a loan from your 401(k), any in-service withdrawal might cause it to be characterized as a taxable distribution in the eyes of the IRS.
Obviously, this IRA rollover possibility is not a big hit with the national and regional retirement plan providers, who would like to see you keep participating in their 401(k) programs rather than partly or fully bail out. But many employees would like a broader and more diverse range of investment options – and some would like the chance to direct their money into vehicles designed to produce future income streams.
Don’t forget to talk to the professionals. Retirement plan administrators and participants should talk to the financial consultant that has helped them with their 401(k) program before making a move. This article is simply an overview, and there will be different details to attend to with each employee.So be sure to touch base with the financial professional you trust.
Other articles to consider:
@taximike that is deep! When I first read it: thought man that's selfish but reread, I get it! That way u know who your true friends are;) 8 hours ago -
05 Feb 2010 18:59
Do You have the Midas Touch?
Posted on February 3, 2010 in Creating IncomeThe Midas touch
Tom and his brother Greg had the Midas touch! No matter where they invested, success was soon to follow. Their claim to fame started in the late 80s when they built a pharmaceutical manufacturing company. By manufacturing other company’s drugs they found a way to avoid expensive research costs, yet reap huge profits. After a merger in 1991, Tom and Greg took all their sweat equity and walked away with nearly $100 million. I asked Tom about his philosophies and keys to being a successful investor. Here is what he shared with me:1. Don’t expect the market or an opportunity to give you a second chance. You have to seize moment and take risks. Not careless risks, but rather calculated ones that have a high chance for a payoff.
2. Take action on your gut or years of learned experience. Your gut will rarely lead you wrong.
3. Understand the upside (best case scenario) and more importantly the downside (worst case scenario) before investing a dime. Plan for the worst and hope for the best.
4. Disregard advice that violates your common sense no matter how eminent the source.
5. Read the annual and semiannual reports. Study before you invest. If anything doesn’t make sense, sell it or don’t buy it.
6. Admit and correct mistakes—sooner rather than later.
7. Keep your own independent counsel of advisors.
8. Be skeptical, not cynical. Trust your own research.
Now coming from someone who’s been there, done that, made a fortune without sacrificing his principles, I’ll listen. Here is one class act who claims Jesus as his Savior and let’s his walk do the talking. He is one of the most generous guys I know!
KEY INSIGHT
God calls us to a life of commitment to Him. Our finances reveal our commitments in life. Where we spend, invest, and give our money reveals our priorities in life. As we grow in our faith, we should long to have our finances line up with God’s word. This means that we need to make a commitment to Him to make changes in our lives. Over the next year we will look at various ways to combine our faith and finances. Your journey begins today. Make a commitment to God that you will seek to learn His ways.
“Delight yourself in the LORD and he will give you the desires of your heart. Commit your way to the LORD; trust in him and he will do this: He will make your righteousness shine like the dawn, the justice of your cause like the noonday sun.” (Psalm 37:4-6)
Register Today for Jay Peroni’s Upcoming Webinar
Posted on February 3, 2010 in Events, Faith-Based Investing“No More Just Surviving, Let’s Start Thriving! How to recession proof your assets and retirement”
REGISTER TODAY
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“10 Mistakes that Could Jeopardize Your Financial Future”
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“Why 401ks, Annuities, and Mutual Funds are a Bad Idea!”
Tired of all the bailouts?
Tired of the moral decay in America?
Tired of going nowhere financially?
Not sure where or how to invest?
Concerned about the economy, your job, career, or finances??Spend an hour with Jay and he can help you find some direction!
Most Americans today are concerned about their investments and the state of the economy. Facing high unemployment, low interest rates, and a volatile stock market that has wiped out millions of people, where do we turn? Jay Peroni believes we need to get back to basics and our Christian heritage and values. So many people have forgotten biblical principles. They got caught up in speculative real estate and stock market investing without a solid financial plan in place. Many have lost 10, 20, 30 even 50 percent or more of their life savings!
Jay will help you gain traction by answering five important questions:
1. Where is your money going and what values are you supporting?
2. How much risk are you taking?
3. Is your money liquid and easily accessible?
4. What rate of return should you expect in this low rate environment?
5. How do you protect yourself from taxes and inflation?Like most people, you may primarily be concerned about the return you want to achieve? But isn’t the source of the return as important if not more important than the actual rate of return you achieve?
Understanding these five key elements of a prudent investment—where you are investing, how much risk you are taking, how liquid your investments are, rate of return you are getting, and what type of inflation/tax protection (in that order of importance)—are critical to navigating through today’s turbulent times.
Come and learn from America’s #1 expert on the subject of:“Faith Based Investing”
• Protect yourself against real estate and stock market down turns
• Prevent future losses
• Find investments in line with your faith, values, and morals
• Increase liquidity, safety, and rate of return
• Regain choice and control
• Find more money to grow and shareYou do not want to miss Jay presenting “How to
recession proof your assets and retirement”When:February 16nd, 2010 Time: 7:00-8:00 PM EST Where: You can participate by phone or on the web.
Would you like to ask Jay a specific question?You may leave your question on the web cast page that you will receive after
you have completed the sign-in process.Getting ready to watch Charlie & the Chocolate Factory with the kid. (the original not the bogus remake) 3 hours ago -
03 Feb 2010 01:21
Obama rips GOP as electoral opportunists? Are you serious? You do a lousy job, America notices http://tinyurl.com/ydt99yj -
01 Feb 2010 14:39
@brentgoers thanks for RT! 8 hours ago -
31 Jan 2010 14:50
2010/01/30 -
30 Jan 2010 13:20
Preferred Stocks: a Special Category of Securities Worth Exploring
Posted on January 30, 2010 in Faith-Based Investing, Uncategorized
In a rising rate environment, where do you turn for fixed income ideas? As we know when rates rise, bond prices fall. So what’s a fixed income investor to do? How about considering a few preferred stocks in the portfolio? Let’s look at some of the pros and cons.Stocks that tend to pay sizable dividends
Institutional and individual investors buy preferred stocks because they offer fixed dividends – in fact, dividend yields are typically greater than those of common shares.
Preferred stocks are occasionally called hybrid securities, because they have characteristics of debt instruments as well as equities. Let’s review some of their features and pitfalls.
Priority dividend payouts
As the “preferred” adjective implies, these shares are a step above common stock. If you own preferred stock in a company, you will get your dividend first; all the common shareholders will get theirs second. You also have preference if a corporation declares bankruptcy or liquidates and sells assets. In that instance, debt holders are paid first, then the preferred shares, and finally the common shares.
Dividend determination
Dividends paid out on preferreds are akin to coupon payments on a bond. A preferred stock obviously doesn’t have a maturity date like a bond, but it does have a par value, which is used to figure out the payouts. (A good stock research website can help you find the par value and preferred dividend rate of return.) You determine the preferred dividend by multiplying the preferred dividend rate percentage by the par value.
If you need to figure out the market value of a preferred stock, you can do that simply. Divide the
dividend amount by the yield (required rate of return stated by the issuer). A visit to a stock research website will give you the yield percentage on a preferred.Similarly, the price of a preferred stock equals the preferred dividend divided by the yield percentage.
Accumulating dividends
Sometimes a corporation can’t pay dividends to preferred shareholders. If that’s the case, the company will often let the preferred stock dividends accumulate until cash flow improves.
The five kinds of preferreds
Most preferred stocks are cumulative – that is, any missed dividend payments accumulate for an eventual payout. Most preferreds are also callable – that is, the stock issuer has a chance to call (redeem) the shares at par value. Yields on preferred shares sometimes include premiums in recognition of this risk.
Some preferred stocks are convertible, with embedded options allowing you the chance to exchange preferred shares for common ones. (Sometimes a provision is allowed that gives the issuer the chance to call for the conversion.)
Some preferreds are participating – when a company does well, the dividends from these shares may be greater than the published yield. Finally, when a corporation issues multiple rounds of preferred stock, there may be preference-preferred shares; if you own shares from the first issuance, your preferreds take priority over preferreds issued later.
Possible pitfalls
So what is the downside of owning a preferred stock? Well, they do present potential and actual disadvantages. When a market sector heats up and common shares take off, preferreds often lag behind. Interest rate hikes can reduce the value of preferred shares. Additionally, you have no voting rights as a preferred shareholder.
Ratings
There is no “official” rating system for preferred stocks; however, the big credit agencies that rate bonds rate preferreds as well. Standard & Poor’s and Moody’s do, and when they downgrade, it can hit a preferred stock hard. Preferred stocks rated beneath BBB- at Standard & Poor’s or beneath Baa3 by Moody’s are considered junk preferreds.2 If you have to go outside of S&P or Moody’s to find a preferred stock’s rating, that’s a red flag – it might mean that it couldn’t get a decent rating from S&P or Moody’s.
A preferred stock investor would do well to research a company’s financial ratios and cash flow, and its interest coverage ratio (higher is usually better).
Consider the variables
Preferred stocks have looked attractive to retirees and others seeking consistent dividends. Rather than explore them alone, you should see a financial consultant who can help you thoroughly understand your options in this area and compare them to other choices you may have.
RT @jayperoni Jay Peroni – Faith Based Investing » Blog Archive » Preferred Stocks: a special category of secu... http://tinyurl.com/ybngpu7#4 hours ago -
29 Jan 2010 11:07
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