Dreos Financial Services

I’M NOT SITTING AROUND WAITING TO BE FLEECED.

HERE’S MY PLAN TO SURVIVE AND PROSPER!

Only an airtight, ahead-of-the-curve, self-protection plan can shield you, your family or your business from the onslaught of IRS audits and other government tricks soon to be unleashed against unsuspecting taxpayers.  I’ll reveal just such a plan right here.

You see, the “good” news is desperate federal officials will go for the easy pickings first – namely the majority of people and businesses who don’t understand what’s coming and fail to prepare.

I continue to firmly believe in the importance of avoiding the herd.

Put another way, if an angry bear (okay, the IRS) is chasing you and another fellow through the woods, you need not be faster than the bear; you only have to be faster than the other fellow.

I’m going to make very sure that as one of my readers, you will not be among the millions of taxpayers who get caught flat-footed in the coming IRS collection jihad.

With the information I’ve collected for you in this briefing, you will be among a select group of forward-thinking Americans who…

1. Have a permanent, fool-proof, stress-free insurance policy against any IRS audit – guaranteed.   (Maybe its time to add a Private Pension Plan)
2. Know how to audit-proof and penalty-proof your tax return, so leering IRS bureaucrats will look past you and move on to easier prey.
3. Possess specific insider knowledge on how to turn your favorite hobby into a business without running afoul of the IRS or the law.  (This will enable you and your loved ones to continue to bring in money and enjoy some great tax breaks even as job opportunities continue to evaporate.)
4. Can spot, respond to, and utterly defeat automated IRS “correction notices” being sent out to millions of people who don’t owe money.  (Over HALF of these notices are completely wrong, yet most terrified recipients pay up anyway.)

My point is you don’t have to let yourself become a victim in the Obama administration’s coming taxpayer audit blitzkrieg.

I am doing this not only for my clients, but also for my loved ones, friends, associates, and personal acquaintances.  (For the most part these are very busy people who haven’t invested the time to discover the horrific financial pressure our bloated central government is under, or detecting how the government is desperately gearing up to raise cash.)

GOVERNMENT REVENUE-

COLLECTORS ARE DANGEROUSLY DESPERATE

The stage is set and the die is cast: U.S. taxpayers (you and I) are about to endure a withering reign of cash-and-asset-grabbing by a financially desperate, totally bankrupt (financially and morally) federal establishment.

There is absolutely no precedent in 230 years of U.S. history

To match the government’s current cash crisis.  (Not an

Exaggeration, as I explain shortly.)

From the solvency point of view, the federal government is hungry, concerned, potentially rabid animal.  Even the family dog will turn around and bite you if he is hurt or threatened.

And that goes double for bureaucrats faced with the loss of their perks and power in the worst tax revenue crunch the modern political class has ever seen. 

In addition, these bureaucrats have a personal stake in putting the squeeze on the assets of ordinary taxpayers.

It used to be police, firefighters, and military people (all of whom put their lives on the line) got generous life-long pensions, on grounds they had physically more demanding and dangerous jobs.

But that benefit has been extended to literally millions of civilian federal and state level bureaucrats.  Work 20 years as a federal employee and you get a VERY generous pension.  Same is true of many state workers.

Yet most of those arrangements are now threatened by a severe tax collection crisis.  So bureaucrats’ motives are quite personal – protect their pension gravy train, in addition to simply wanting to spend more.  They really see it as an us (bureaucrats) vs., them (individual taxpayers, small businesses, etc.) situation.

History is being made.  As a taxpayer, you are at ground-zero of the federal government’s unprecedented bankruptcy crisis.   Meaning if you don’t take sensible precautions now, cash-desperate IRS agents are going to turn their problem into your problem.

That’s why I am writing today – make sure you are prepared for the day when the IRS goons come knocking.  Or better yet, so well prepared that they choose to knock on someone else’s door instead.

OBAMA – IRS PLAN

HERE IS EVERYTHING YOU NEED TO KNOW….

(Source: Independent Living)

Only an ostrich with its head in the sand could miss the obvious fact that the U.S. government’s finances are crashing.

As seen in a video clip that’s drawing attention on YouTube, Mr. Obama conceded, “we are out of money now.”

But one point the talkative Mr. Obama is not so eager to discuss openly is exactly how he plans to refill the depleted Treasury to pay of his bailouts, Obamacare, and the federal government’s out-of-control entitlements.

As I’ll reveal here in detail, Obama has gift-wrapped and handed to the IRS its most deeply-coveted prize – a green light to go after U.S. taxpayers tooth and nail.

Obama’s funding emergency is so severe, The White House

Has quietly authorized the IRS to suck up every greenback

That isn’t nailed down, no matter what.

Obama’s admission of the patently obvious – that the till is empty – came just as he unveiled his latest budget, which even his pals at the New York Times  sheepishly admit doubles the number of IRS enforcement auditors – and that’s just for starters.

Oh yes, the need to collect more tax money is yet another “emergency” (and thus an opportunity) for this White House.

But the shocking circumstances of the federal government deep debt – in addition to its scary cash-flow problems – are far greater than the White House, Congress, or their media lapdogs will ever fess up to.

THESE PEOPLE (OBAMA & FRIENDS) JUST WON’T STOP 

We’ve been discussing the value of a Private Pension Plan, the need to get money out of the tax system forever.   We’ve made you aware the Obama administration wants to take control of your 401K’s and other Qualified Plans by forcing you to invest with the government or lose your ability to deduct the money you invest into your Plan.  I’m not certain that will happen but depending on who is elected and if this President has four more years after his first term the odds are high that they will take control of our retirement plans which makes owning a Private Pension Plan even more valuable to you. 

There is another problem on the horizon and over the next several weeks there will be a series of articles about what we already know, that the government is out of money and is looking for ready cash for their spending sprees, entitlements and other social programs. If given the opportunity they will continue spending and spending until they have bankrupted the financial system in this country as we know it.  We will have a series of five articles that will follow, talking about Obama, the IRS and their plans to fleece America to get them more money to spend.  As you read these articles they will give you credence why it’s in your best interest to get as much money out of the tax system and give yourself financial security no matter what the future brings.

DON’T LET OBAMA GET HIS GRUBBY

HANDS

INTO YOUR RETIREMENT ACCOUNT!!!

Here’s what is going on.

The cash-strapped Obama Administration’s unofficial 401(k) nationalization czar is utopian New School for Social Research academic, Teresa Ghillarducci—who was dubbed by U.S. News and World Report as “the most dangerous woman in American” after she appeared before Congress to testify in favor of government seizing 401(k)s and other retirement assets.

The “Most Dangerous Woman in

America”

Who Helped Obama Rip Off GM Bond

Holders

Now Wants YOUR Retirement Money 

Following her Congressional testimony at a 2008 hearing to begin ending 401(K) and IRA tax advantages, Ghilarducci admitted on conservative talk show host Wilbur Kirby’s KVI 570 show in Seattle the truth about the left’s scheme for gaining control of private retirement accounts:

“I’m just rearranging the tax breaks that are available now for the 401(k)s and spreading (here she paused briefly to consider her words) spreading the wealth…”

Obama administration officials and their leftist allies in Congress have zeroed in on over $15 trillion in 401(k)s, IRAs, 403(b)s, and other accounts – and only a grassroots bonfire of opposition will ultimately stop them.

Why?   Major state pension funds, state governments, and the entire federal entitlement program structure are on the verge of collapse and in need of bailouts due to collapsing tax revenues.

11/8/10

INDEXED LONG TERM INTEREST RATES

WHY THEY MAKE SENSE FOR EVERYONE

We will provide some very interesting information concerning the interest rates used by insurance companies that solicit Private Pension Plans for the public. 

The S&P 400 Mid-Cap and the S&P 500 are two of the seven indexes that are available and they are at the top of the list.  The S&P 400 Mid-Cap has an annual cap of 12% and the S&P 500 has 14% and both have an annual floor of zero.  Meaning that even in a bad year when the market has gone underwater you can never go below zero, you can never lose money under the index.  When CD’s are paying 2 or 3% and passbook savings are lower than that and investing in the market is a risk at best since you can go way under water and lose all of your investment savings, sanity must prevail.  Today in a very shaky economy its not what you earn its what you don’t lose and I think most of us agree with that.  You will note at the bottom of this article that there is a 15 year average of the seven major indexes.  It illustrates the annual cap as noted before and over the last 15 years the total average rate of return.  You will note that the S&P Mid-Cap 400 has returned 9.07% over the last 15 years and the S&P 500 8.47%.  I like both but for me the S&P 500 allows you a little bit more upside at 14% and being the eternal optimist I believe that in the future especially over the next 15 years the economy will continue to get better and that will reflect in higher interest rates in our investment portfolio.

If anyone reading my Blog would like the entire research and breakdown of the gross earnings over the last 15 years, the net results of the index to the consumer that will be accompanied by the breakdown in this blog of the highest down to the lowest rate of return over the last 15 years can be yours by a phone call or email.  With the interest rate accruing tax deferred and the distributions at retirement via loans they pass to the consumer tax free.  If you do some research you will find out that an indexed product wrapped into a well constructed life insurance policy for use during your lifetime or at retirement has merit.

15 YEAR AVERAGE OF

THE SEVEN MAJOR INDEXES

                                                            Annual Cap                 15 Year Average

S&P Mid Cap 400                                   12%                            9.07%

S&P 500                                                  14%                            8.47.%

Dow Jones, Euro Stoxx 50                      13%                            8.41%

NASDAQ                                                 12%                            7.65%

Multi Index                                            12%                            7.41%

Russell 2000                                          12%                            7.11%

Dow Jones                                              13%                            6.74%

11/1/10

BLOG

ALERT, ALERT, ALERT

PAY ATTENTION

Everyone who reads my BLOG note that the future of your children and grandchildren for  generations to come will benefit from the anticipated results of this mid-term Election!  Make sure you yourself and take a few moments to talk to your friends and make sure nobody assumes their vote doesn’t count, trust me it does. 

Based on the most reliable facts that I can gather, President Obama, Harry Reid and Nancy Pelosi who represent the current leadership of our government in Washington must be neutralized.

Hopefully, Reid and Pelosi will be stopped in the Mid-Term and we can take care of the President in 2012.  The future of this country should not be socialism but capitalism and the opportunity to build a business and live the American Dream!  

I’ve never been so concerned during my long life as I am today and we must change the course of history now.  The Tea Party has awoken the country like no group has ever before; let’s honor their energy by making a difference.  See you at the polls.

LIFE INSURANCE AS AN ALTERNATIVE TO A ROTH IRA

THE CONCEPT:

There are many vehicles for people to generate retirement income.  IRAs are a common alternative.  A Roth IRA has benefits of not only income tax deferral but also tax free income.  Of course a Roth has disadvantages including possibly of loss due to market performance (if using mutual funds), and limitations as to usage including contribution and income limits.  When using an indexed universal life policy, the cash value can be used to generate the benefits of a Roth IRA and many more.  The benefits of life insurance include a lack of client income tests on contribution limits.  For many life insurance can be a compelling option as an alternative or supplement to a Roth IRA for generating retirement income.

SOLUTION:

Indexed Universal Life is an ideal solution for everyone.  A life insurance policy will ensure financial security and retirement if something were to happen before retirement.  The Indexed Universal Life Insurance Policy also presents several additional benefits:

• No funding limitation
• Tax free income if taken via loans and policy remains in force
• Life insurance provides leveraged remaining assets post retirement via death benefit
• No early withdrawal penalties
• Private and probate free
• Competitive performance
• Downside performance protection
• Chronic Illness Accelerated Benefits

DID YOU KNOW?

HERE IS SOME FOOD FOR THOUGHT ABOUT RETIREMENT ACCOUNTS & TAXES

If you listen to the wisdom of many advisors you may hear you should contribute to some form of a Qualified Plan because when you retire you will be in a lower tax bracket.  They are not necessarily wrong because most people do retire in a lower bracket but the main reason is not because of taxes but rather that they are broke.  While most people will retire in a lower bracket remember that you are not “most” people and you do not have to be one of the “most”.  You can take the steps necessary to make sure you are not a statistic.  One of those steps will be to meet with a qualified professional that can help you avoid areas you may be transferring your wealth unknowingly and unnecessarily.

If you have to retire on less that you are making when you are working it can mean only one thing.  You probably do not have enough money.  I have met few people who want to work their entire life only to retire on two-thirds of what they can hardly live off of while you were working.  Time goes by quickly and with out the right information it is possible to transfer a large sum of your money unnecessarily. 

The other problem with the myth, “You will need less at retirement” is the cost of thing in the future.  Things you may not have planned for today.  Many people plan to have their home paid off before retirement.  Would it be a problem if when you retire your medical costs were great than your current mortgage payment?  What about property taxes?

Many retirees today deeply regret their over reliance on Qualified Retirement Plans.  They did not fully understand the tax impact down the road.  On the other hand a number of them do not want or need the money from these accounts but at seventy-one and a half, they have no choice.  Uncle Sam wants his cut.  The penalty for not taking the required distribution at 50% of what you should have taken.  This whole scenario could be more costly than you can imagine down the road.

Qualified Plans now must be looked at in a much different vain than ever before.  As I previously indicated the Obama administration is trying to take control of our 401K’s and our other Qualified Plans by tying them to the Federal Government.  You need to also consider the tremendous debt that we face as a country and higher taxes for ourselves at retirement and for future generations to come.  It isn’t inconceivable that tax brackets down the road could be 50 to 60% even if it is for maybe a short period of time.  Think about retiring on your 401K to get fifty cents for every dollar to me that just doesn’t quite seem to be fair.  I’ve expressed over and over there is a better way to go.

Why not take control of your assets, have accessibility and never worry about income taxes or poverty by setting up a Non-Qualified Plan today?

THE GHILARDUCCI-OBAMA PLAN EXPOSED

            In a 2009 research paper, Teresa Ghilarducci declared “Guaranteed Retirement Accounts (GRA’s) are like universal 401(K) plans except that the government, as befits a large and enduring institution, will invest and manage the pooled savings.”  That’s because, as the professorial Ghilarducci believes, “Humans often lack the foresight, discipline, and investing skills required to sustain a savings plan.”  (Of course, that analysis of “humans” would not apply to left-leaning PhDs, members of Congress, and bossy bureaucrats – who somehow are endowed with the skills needed to manage everyone else’s investments.)

            Ghilarducci touts her proposed accounts as enabling everyone to avoid stock market risk and still earn guaranteed inflation-beating returns.  She would have you believe that the government can magically guarantee that the money under its control will earn a 3% annual return on top of inflation.  The notion that anyone can guarantee sizeable inflation-beating gains in perpetuity and zero downside is a naïve fantasy at best.  It’s probably more accurately described as a canard put out to hoodwink the gullible public.

            The government could conceivably create dollars out of thin air to make good on promises denominated in fixed dollars.  But paying out promises denominated in ever-increasing purchasing power on the scale proposed by Ghilarducci is an impossible task to pull off given the government’s financial condition and the magnitude of the existing obligations that are already going to be impossible for the government to pay in constant, non-depreciated dollars.  The inescapable conclusion: Any “inflation adjustment” on Guaranteed Retirement Account will be a total sham.

            Under the Ghilarducci Plan, 50% of your GRA automatically goes to the government upon your passing, not your heirs.  And that’s just for starters, Future tax deferments to 401(K)s and IRAs would be scrapped in exchange for a supposedly guaranteed 3% annual real return.

            Backers of government-controlled accounts stress that 401(K)s will still be “legal” under her plan – yet if 401(K)/IRA tax advantages are removed, employers will no longer have a financial incentive to offer them at all.  (All part of an active “herding” process to force private retirement funds into government-approved “investments.”)

            John Belluardo, President of the Stewardship Financial Services in New York, notes: “A lot of people contribute to their 401(k) because of the match of the employer…if the tax deferral goes away, the employers will have no reason to do the matches, which primarily help people in the lower income brackets…”

            By making 401(k)s and IRAs unattractive vehicles for investing, the government is setting things up to make “converting” over to a government-ran Guaranteed Retirement Account your best “choice.”

            But as Karl Denninger of the Market Ticker Website warns: “Choices have a funny way of turning into mandates, and this looks like a raw admission that Treasury knows it will not be able to sell its debt in the open market – so they will effectively tax you by forcing your “retirement” money to buy them.”