Ashford Creative Wealth Strategies Newsletter - February 2010

To view this month's newsletter, please click on the PDF file located at the bottom of the page.

This month's newsletter features the following articles:

Get it in Writing

For many people, the greatest obstacles to achieving their financial objectives are internal. Character flaws, lack of discipline and other psychological issues often sabotage sound financial plans. But there is a simple, practical, and powerful method to overcome those challenges: by writing it down. A short discussion on the benefits of getting your most important financial issues in writing.

5-Minute Financial Thought: Wanna Trade?

If you could trade all your financial assets for a contract that would guarantee a stable annual return for 50 years, what is the minimum rate of return you would accept?

The answer to this theoretical question can be helpful in determining one’s risk tolerance. But it also reveals whether or not the respondent has realistic expectations. When comparing answers between institutional financial professionals and individual consumers, it’s also very surprising to realize the difference in return expectations.

The Power of Ideas

In the past three years, an old article on life insurance has resurfaced in various trade publications and on the Internet. The structure of the language is a little different, but the essential ideas behind life insurance remain as relevant as ever, and this short piece aptly illustrates the lasting power of great ideas.

Single-Premium Life Insurance and MECs

As other investment products have underperformed, some financial professionals are “rediscovering” the virtues of whole life insurance. Often, this emphasis included strategies to maximize the growth of cash values.

More than 20 years ago, single-premium life insurance seemed to be the perfect life insurance product for cash accumulation. However, changes in the 1988 tax law decreased or eliminated some of the unique advantages of single-premium life insurance, and at the same time, introduced regulations and penalties on policies that accumulated cash too quickly. Labeled as MEC limits, these rules apply to all life insurance policies, and anyone contemplating adding additional amounts to their contract needs to be aware of the potential dangers of violating these rules.

Related Documents

Ashford Creative Wealth Strategies Newsletter - February 2010

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Guardian, its subsidiaries, agents, or employees do not provide tax or legal advice. The Associates of Ashford Advisors, Inc., are not licensed to sell insurance in all 50 states. To find out if an agent is licensed in your state, please contact Johnny Howard at 770 390-2600. The Registered Representatives are securities licensed in Georgia, Florida, Alabama, Mississippi, South Carolina, North Carolina, Tennessee, Virginia, New York, Colorado, Arizona, Michigan, Illinois and Nevada and is strictly intended for individuals residing in those states. No offers may be made or accepted from any resident outside these specified states. The information or opinions contained in this Internet site should not be construed by any consumer and/or prospective client as an offer to sell or the solicitation of an offer to buy any particular investment product. The information contained herein is directed solely to those individuals who reside in jurisdictions in which the representative is registered in the state where the consumer and/or prospective client reside. Any subsequent direct communication with a consumer and/or prospective client shall only be conducted by a representative that is registered in the state where the consumer and/or prospective client reside. The information on this web site is designed to be general in nature and for educational purposes only. Guardian, its agents and employees do not give tax or legal advice.

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* Registered Representative of Park Avenue Securities LLC (PAS), Two Ravinia Drive, Suite 750, Atlanta, GA 30346. Securities products and services offered through PAS, (770) 390-2600. Financial Representative, The Guardian Life Insurance Company of America (Guardian), New York, NY. PAS is an indirect, wholly owned subsidiary of Guardian. Ashford Advisors is not an affiliate or subsidiary of PAS or Guardian.
PAS is a member FINRA, SIPC.

** Registered Representative and Financial Advisor of Park Avenue Securities LLC (PAS), Two Ravinia Drive, Suite 750, Atlanta, GA 30346. Securities products/services and advisory services are offered through PAS, a registered broker-dealer and investment advisor, (770) 390-2600. Financial Representative, The Guardian Life Insurance Company of America (Guardian), New York, NY. PAS is an indirect, wholly owned subsidiary of Guardian. Ashford Advisors is not an affiliate or subsidiary of PAS or Guardian.
PAS is a member FINRA, SIPC.

Material discussed is meant for general illustration and/or informational purposes only and it is not to be construed as tax, legal or investment advice. Although the information has been gathered from sources believed reliable, please note that individual situations can vary, therefore the information should be relied upon when coordinated with individual professional advice.

Disability Income and Long Term Care products underwritten and issued by Berkshire Life Insurance Company of America, Pittsfield, MA, a wholly owned stock subsidiary of The Guardian Life Insurance Company of America, New York, NY. Products not available in all states. Product provisions and features may vary from state to state.

Guardian does not offer Property and Casualty insurance products or services.