Financial Services Tips From Randy Taylor

How to Select and Purchase Mortgage Life Insurance

2012-02-02T13:18:00.000-08:00

What is the purpose and proper use of Mortgage Life Insurance?

In the event of an early death of the home owner prior to the loan balance having been completed; the income of the home owner would be lost forever; yet the house payment is still due. Mortgage life insurance is simply a funding vehicle that pays an income tax free payment to the beneficiary to allow the debt to be satisfied. Then, the surviving spouse, children, or relatives can own the property free and clear without having to face the burden of raising money or facing foreclosure.

Why would I need Mortgage Life Insurance if I already have P.M.I., Private Mortgage Insurance, or insurance from the FHA?

PMI, Protects the lender, but does result in the buyer being able to use insurance cash to pay off the loan and own the house. PMI insures the lender against losses in the event that the home is foreclosed upon. Both PMI and FHA insurance, are used in cases where the buyer has a low down payment; typically under 20%.

What Types of Products are available to me as a solution?

There are basically 2 types: Permanent life insurance that you keep for a lifetime; and Term Insurance, a

temporary plan that you would keep until the loan is paid off. Contact the author for more details if you wish insurance estimates for insurance that continues after the loan is paid off.

Which programs have the lowest initial premiums ranked from the highest to the lowest?

Permanent plans: Whole Life, Universal Life, Indexed Universal Life, and Variable Life are plans designed to be used for lifetime coverage rather than mortgage insurance specifically. They are the most expensive solutions in most cases; for mortgage insurance. Contact the author for more details.

30 or 20 year term plans with a guaranteed return of all premiums at the end of the term.

These programs feature level premiums and insurance that never go up and a refund at the end of term of all premiums paid, with no interest if the plan is cancelled after the 20 or 30 years.

Straight guaranteed level premium term insurance. These plans can be renewed with no exam in the future but are best used in cases where you plan to cancel the insurance when the terms are up.

Term lengths available: 30 years, 25 years, 20 years, 15 years, and 10 years.

In most cases the best strategy is to buy a temporary or "term insurance" plan that has the longest rate guarantee that fits your budget.

If I am to buy my own Personal Mortgage Insurance; How to pick the right product for my needs?

First of all estimate how long you might need the insurance based on how many years you will be paying on a loan. A term plan that renews or expires at the time is the least expensive long term solution.

Secondly, Work with a multi-company broker, rather than a 1 company "captive" agent so that you will have access to all available solutions with just 1 phone call.

Ask your broker for a "Vital signs report". This report compares the financial strength ratings of insurance companies as measured by 5 different independent 3rd party sources. The composite rating should be 80% or higher for the carrier you choose; according to most experts.

Work with a broker that can search several companies and compare rates for you bases on your age and current health. You can then ask for a computer printout of the best plans based on premium for you from companies that have a composite rating of the 80th percentile or higher. These reports and rate searches should be offered free of charge.

Author: Randy Taylor

Serving Clients since 1983

Randy Taylor Financial Services

Ca. License # 0643596

(916) 601-5270

HOW TO EARN UP TO 9% TAX FREE IN MINUTES!

2012-01-20T12:40:00.000-08:00

THE SOLUTION IS SO SIMPLE THAT IT IS OFTEN OVERLOOKED

Calling your life insurance, health insurance, or auto insurance agent and setting up your current payments to be billed on an annual basis instead of quarterly or monthly; can often result in a net savings to you of up to 9%.

This is the equivalent of investing money at 9% with no fees and no taxes on the gain!

How is this possible? Insurance companies have found that they keep customers with the greatest success via annual billing versus other methods. They also save in administrative costs that occur in the billing process.

Therefore they encourage consumers to pay premiums in advance by offering discounts that in this economy can be three times more attractive than leaving your money in a municipal bond account or a low interest money market account.

What are the best ways to pay premiums?

Examples In order of the lowest cost to the highest:

Single annual payment: Usually no fees of any type and therefore the least expensive.

Semi-annual payments: This is often a great compromise since the fees may be as little as 2% additional.

Monthly deductions from a checking account: or credit card: The fees are about 4% on the low end and up

to 9% in most cases.

Quarterly payments: Insurance companies have found that this method of billing leads to the worst results

in customer retention, requires billing, and therefore is the most expensive. I have seen life insurance companies charge as much as a 20% fee for quarterly payments.

What is the bottom line? If you are holding enough money in a low yield investment vehicle like an interest bearing checking account, money market account, or in this economy; it just doesn't make sense to leave it there to earn 3% interest and avoid a savings of up to 9% net.

It should be also noted that other high fee accounts like credit card charges as well as insurance payments should be paid in full whenever possible before investing money towards your retirement etc. The reason: It's simple math: most investment accounts cannot perform on a guaranteed basis at a level higher than card fees or insurance premium fees.

Discounts vary according to both the insurance companies and the product types. The above examples are

typical though of life insurance companies. It is recommended that you call your insurance agent to determine the exact discounts for your personal or commercial lines of insurance and act accordingly. This article is offered for informational and entertainment purposes only and not meant to be construed as tax, insurance, or investment advice.

Please feel free to comment and/or contact me for more information

Author : Randy Taylor

Randy Taylor Financial Services

(916) 601-5270

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Copyright: Creative Commons 2012 Ok, to share this article as long as it is reproduced in it's entirety without modifications of any kind.

How to Guarantee Safe Lifetime Income Payments at Retirement

2011-12-23T08:49:00.000-08:00

Author: Randy Taylor, Copyright Creative Commons License 2011

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QUESTION: Interest Rates are low. Would a Fixed Indexed Annuity, Savings Account give me guaranteed level income that is competitive with other safe savings vehicles like Municipal Bonds, Bank Certificates of Deposits, and others?

SOLUTION: If your goal is clearly to take level income payments at retirement and you have other sources of liquid cash for emergencies; a Fixed Indexed Annuity can make perfect sense; but in most cases an "Income Rider" is recommended. The income rider guarantees crediting towards an income account that can grow at a rate in today's economy by as much as 6% compound interest; guaranteed by contract.

What is a Fixed Indexed Annuity? A fixed indexed annuity in layman's terms is a savings account whereby the insurance company credits interest on an annual basis based on any upward changes in stock market indices such as the S&P index. In most cases the account "resets" yearly so that you do not have to recover lost interest if the market index you chose goes down. This is key in a volatile market.

Why add an Income Rider?: An income rider is a separate endorsement or contractual addition which states that interest will be credited to a separate "Money Bucket" that grow at a predetermined rate. (6% compound interest or 7% Simple Interest with 2 of the most popular companies as of 12/20/2011.) The key is that if you leave your deposit with the insurance company and take the payment dictated by the insurance company; you cannot ever outlive your income payments. The insurance company guarantees a lifetime income payment as long as you follow the contractual guidelines which are disclosed before purchase by contract. Your income payments in today's economy can be as high as5 times that of the interest payment from a bank c.d. account for example. For details see your advisor or tax person.
Key features: 1.) Lifetime Income Payments: Even in a situation with a term of 10 years, you can take guaranteed income payments starting after only 1 year and get a very high income payment guaranteed for life if you have an income rider attached to the annuity product.
2.) Unlike older annuities that used to require giving up access to your principal if you chose to start guaranteed income payments; Newer indexed annuities with income riders attached; allow you to cancel and take any cash that has not been spent from the basic accumulation account.

What are the downsides of an income rider? Fees: There is a fee that is around .65% with most companies. This fee reduces the growth in the accumulation account that is available at surrender . It also reduces the amount of money available to the beneficiary at death due to the fee; but a good broker can put you in a product that waives the fees at death. Penalties for early withdrawal: There are penalties with all annuities if you take more than the free 10% annual withdrawals that the contracts typically allow. There are waived at death but reduce affect your cash availability if you cancel early. You will want to consult with your financial advisor and/or tax accountant or attorney before taking income or cash from any annuity.

Advantages of an indexed annuity:
Safety:The principal has a minimum interest guarantee which gives a consumer safety of principal if kept to the end of the term which can be 5 , 7, or 10 years in most cases.
Income Tax Deferral: Funds grow tax deferred until spent or death occurs.
Probate Avoidance: This is simple: There is a named beneficiary since this is similar to an insurance contract like life insurance and typically avoids probate without a will or trust.

Lifetime Income Features: Money can be taken in the future as a single lump sum or in level payments that are guaranteed to continue for life.

*The above article is offered for comparison purposes and entertainment only and is not meant to give legal, tax, or investment advice. Please consult with your personal financial advisor including your attorney or tax advisor before buying an indexed annuity or investment vehicle of any type. Please also ask for a statement of understanding and complete annuity contract sample related to any specific annuity offered to you by any advisor before purchasing any annuity.

Author: Randy Taylor, Copyright Creative Commons License 2011

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Market Volatility May Be Here to Stay

2011-08-03T21:59:00.000-07:00

STOCK MARKET VOLATILITY LOOMS IN THE FUTURE

See what Jeffrey Kleintap, CFA for Lensco Private Ledger Says. Article link below:

Jeffrey says:

" However, it is unlikely to be clear sailing for the rest of the year as volatility is here to stay"

My take:
Creative Commons License 8/3/2011
Randy Taylor, Author
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One of the top 5 money managers in the world now; Allianz SE, is holding 183% of their new premium dollars in short term instruments instead of buying over priced or junk bonds in order to keep their yields up.

What does this mean? It means that when one of the largest money managers in the world gets conservative; it only supports what is commented on in the article below. (click on link) I have been to the home office of the two most popular insurance companies and money managers in the world and was able 2 years ago to talk to the actual actuaries of the company that own Pimco; the largest bond portfolio manager in the world. What I found interesting is that the conservative companies like Allianz of North America weathered the financial storm about 3 years ago by holding cash instead of buying overpriced bonds while their competitors took larger risks.such companies had to actually refuse business at that time because they could not borrow money in amounts large enough to cover legal reserve requirements.

Please read :(also note the pie chart )

The solution: Contact your financial advisor, attorney, and/or tax professional for advice.

I personally specialize in IRA savings accounts that feature safety by contract guarantees.

See what Jeffrey Kleintop, CF at LPL has to say about the markets expected volatility.

http://tinyurl.com/42uke87

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Creative Commons License 8/3/2011 It is ok to copy or distribute this article as long as it is copied in it's entirety and not altered in any way.

The Sidney Smith Relief Fund and Comedy Tweet-up Fund Raiser Video

2011-08-01T08:10:00.000-07:00

You can Still contribute with online donations to help raise money for the family of Sidney Smith, a young
child who had a serious bike accident; sufferred a traumatic brain injury that resulted in a coma. A link will be provided for those that missed the event with comedienne, Shayla Rivera; who came up from Hollywood to help. IN this video, Cindy Rhoades , the event organizer and myself, acting as the M.C, introduce the program.

http://www.youtube.com/watch?v=wIcVL3UqmdM&hd=1

HOW TO CAPTURE DATA I.E., EMAILS FOR FREE

2011-07-26T07:24:00.000-07:00

NEED A SIMPLE AND LOW COST WAY TO BEGIN AN EMAIL MARKETING PROGRAM? (Discover and use MailChimp)

" This simple and free application now has it's own Facebook application"

. It seems everyone is looking for great ways to increase the number of email addresses in their master list. MailChimp, a well known inexpensive-free email marketing tool, now has it’s own Facebook application. Once you sign up for your free MailChimp account, you are able to create your own opt-in page within the structure of your Facebook Page. You can either give away a free ebook or report, advertise your newsletter and much more. The best part is that you can promote this page, using the link, so that people are able to sign up without leaving your page OR Facebook. Everytime someone signs up, you get an email “ping” and MailChimp stores the email addresses in your MailChimp account.

I think that this somewhat automated application has great value for those that want to create and maintain a database that can be used for email or video email programs in the future. If you are in sales and on a limited budget, this application can save you time while also creating a data capture system that takes little or no time on your part once set up. I think that this has great value for most and should be investigated and put into action immediately unless you already have a data capture system.
Please comment on this blog entry.

Randy Taylor
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Life insurance and I.R.A. Account Specialist
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(916) 601-5270

Creative Commons Licenese: copyright Randy Taylor, Author 7/26/2011

You may copy this and distribute this article as long as it is copied in it's entirety and not altered in any way.

How The Masters View Motivation

2011-06-25T13:38:00.000-07:00

It is ok to copy and redistribute this blog posting as long as it is copied in it's entirety and not altered in any way. Copyright Creative Comments License 4/2011, Author: Randy Taylor, (916) 601-5270 June 25, 2011

The Masters Shown Below list their favorite Quotes regarding Motivation

On Overcoming Procrastination: Tony Robbins and Nike said it Best:

" Just Step Up " : Tony Robbins
" Just Do It " : Nike

It seems though, that anything I have personally accomplished has been a direct
result of focusing on a specific goal, with a time deadline attached. Bruce Jenner also credited his Olympic Decathlon victory to setting a 4 year goal and checking his goal list daily. Take a minute and set which quotations the masters have chosen as the keys to motivation.

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QUOTES from the Masters...

On Desire/Motivation

On Experience

"The best motivation is self-motivation. The guy says, 'I wish someone would come by and turn me on.' What if they don't show up? You've got to have a better plan for your life." -- Jim Rohn

"Desire is the starting point of all achievement, not a hope, not a wish, but a keen pulsating desire which transcends everything." -- Napoleon Hill

"The only real limitation on your abilities is the level of your desires. If you want it badly enough, there are no limits on what you can achieve." -- Brian Tracy

"The difference between the impossible and the possible lies in a man's determination." -- Tommy Lasorda

"Life is a succession of lessons which must be lived to be understood." -- Ralph Waldo Emerson "Experience is an asset of which no worker can be cheated, no matter how selfish or greedy his immediate employer may be." -- Napoleon Hill
"Take time to gather up the past so that you will be able to draw from your experiences and invest them in the future." -- Jim Rohn
"Develop wisdom in sales by reflecting on your experience, and learning everything you can from every call." -- Brian Tracy

HOW TO KEEP RETIREMENT ASSETS SAFE IN A VOLATILE MARKET

2011-06-09T09:07:00.000-07:00

               THE S&P INDEX DROPPED 5 WEEKS IN A ROW!
             S&P Stock Index Shows Decline, Annuites Can be a Solution

The S&P Stock index dropped 5 weeks in a row; reducing this year's yield by 1/2!
(Source: Jeffrey Kleintop, CFA, LPL June 6th Newsletter.)

Jeffrey Kleintop, and industry expert; states that jobs are increasing at the best rate since the recent economic decline; but further states: "Last week's reading on the ISM index confirmed that the economy has entered a period of slower growthand stock market performance is likely to be modest and volatile in the month's ahead. However we do not envision a return to a recession or a bear market for stocks."

HOW CAN YOU PROTECT YOUR RETIREMENT ASSESTS AGAINST YEARLY VOLATILITY IN THE S&P INDEX?

This is Easy! 1 Solution is to own an Indexed Annuity.

HOW WOULD AN INDEXED ANNUITY GUARANTEE SAFETY?

Principal and Minimum interest is guaranteed by contract and annual yields have a reset formula:                                                                                                                         An indexed annuity has unique options for crediting annual interest to your account that
guarantee by contract that credit interest when the index goes up; while locking in that interest yearly.
In other words, if the index goes up, interest is added to your account.
If the S&P goes down the next year; your account is credited with 0 % for that year instead of a negative number. (This means you do not lose the prior year's growth )

You also are credited interest the next year for any upward growth from the prior year. Instead of waiting for the S&P index to recover to it's starting point; your account would get interest based on changes from year to year up to a ceiling or "cap".
There are choices of how you have your interest calculated; but with each method; your principal is fully guaranteed if you keep your contract until the end of the term. The term choices are usually 5, 7, or 10 years. The safest method is usually an annual reset choice.

YOU CAN ALSO CHOOSE TO INSURE A HIGH LIFETIME INCOME YIELD EVEN IF THE S&P INDEX NEVER INCREASES

How is this accomplished? The answer is you can buy an income rider which reduces your annual yield with most companies by about one half of one percent. This fee is lower than many other investment vehicles and the rider gives you this amazing option: If you stay with the insurance company 10 years and then take income payments monthly or annually you have a guaranteed income payment for life as high as 9.5% of your deposit locked in for life! ( No matter how many payments you take). If you are 65 when you take income and defer payments only 1 year: instead of a lump sum; the yields can still be as high as 5.9%! .....No matter what the S&P index does.
Cons: There are penalties for early withdrawal of more than 10% in a year that dissapear at the end of term; similar to a bank account. Your earnings are limited to a cap each year due to the annual reset feature which protects you against loss in any down year.
Pros: You can have an income rider guaranteed by contract that you will have income payments that can not be outlived.
        Your accumulated account value is available probate free at death; with no fees for a will or trust.
        Your principal plus a minimum interest guarantee is fully protected if you hold it until the end of the term and take no withdrawals; similar to a c.d. account.
         If you decide to walk away with all interest and principal after the period your account can be protected against yearly stock market volatility
        If your goal is to use the account for retirement purposes; the interest crediting via the guaranteed income rider is much higher than almost all safe vehicles.

SUMMARY:    If you are worrying about S&P yearly volatility and desire tax deferral, safety, and future income: This can be an excellent alternative to other safe accounts. An indexed annuity may not be suitable for you if your goals are short term cash accumulation or if you need more liquidity due to your current financial situation and age. Please consult with your financial professional, CPA, or tax preparer before deciding if an indexed annuity is right for you. This article is presented for informational purposes only and not meant to be given as tax or investment advice. Feel free to call my office at (916) 601-5270 for a complete and free suitability review to see if this concept is the best solution for your retirement accounts.
This article can be copied or distributed as long as it is copied in it's entirety and not modified in any way. Author: Randy Taylor, Copyright Creative Common License 06/09/2011
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HOW TO REVIEW REDUCTION IN INCOME TAX RATES

2011-05-25T06:59:00.000-07:00

TEMPORARY REDUCTION IN INCOME TAX RATES EXTENDED:

Today's topic is the temporary reduction in individual income taxes. If you would like additional information on this topic, please call my office at: (916) 601-5270

Reduction in Income Tax Rates

Reductions in income tax rates in excess of 15% were scheduled to remain in effect through 2010, at which time they were subject to "sunset" provisions, meaning that income tax rates would revert to 15%, 28%, 31%, 36% and 39.6% after 2010. The 2010 Tax Relief Act, however, extended the lower income tax rates through December 31, 2012.

Income Tax Rates

Tax Years	Lowest Bracket	2nd Bracket	3rd Bracket	4th Bracket	5th Bracket	Highest Bracket
2011 - 2012	10%	15%	25%	28%	33%	35%
2013 and later	No 10% bracket	15%	28%	31%	36%	39.6%

Planning Note:

Consider using tax savings to fund an IRA, 401(k) or other tax-favored plan.

10% Tax Bracket

The availability of the 10% bracket was scheduled to expire at the end of 2010, after which the lowest tax bracket would be 15%. Thanks to the 2010 Tax Relief Act, however, the 10% tax bracket has been extended through 2012. If "sunset" provisions take effect at the end of 2012, the 10% bracket will disappear and the lowest tax rate will be 15%.

10% Tax Bracket Thresholds

Filing Status	2011 - 2012	2011 and later
Married, Filing Jointly	$14,000 ($17,000 in 2011)	No 10% bracket
Single Taxpayers	$7,000 ($8,500 in 2011)	No 10% bracket

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Randy Taylor Financial Services

Gold River Drive

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cycle.1@live.com

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The purpose of this newsletter is to provide information of general interest to our clients, potential clients and other professionals. The information provided is general in nature and should not be considered complete information on any product or concept described. For more complete information, please contact my office at the phone number above.

MEDICARE IS IT BANKRUPT ALREADY?

2011-05-20T15:33:00.000-07:00

FIRST THE BITTER REALIZATION THAT SOCIAL SECURITY IS IN JEOPARDY AND NOW:

MEDICARE, WILL IT BE BANKRUPT?

Blog entry by Randy Taylor Financial Services, Randy Taylor
(916) 601-5270 for life insurance or IRA savings account estimates.

This author tends to think that we have to prepare for the worst. We should use long term care insurance for health catastrophies, and retirement income via indexed annuity savings accounts or others, to replace or protect us against a Social Security downfall.

Read this interesting 3rd party article regarding the instability of Medicare and make your own conclusions
NaturalNews) - Almost every American who has read a newspaper, watched T.V. or signed onto the Internet in the past few years knows that Medicare, one of the government's largest entitlement programs, is in financial dire straits and is heading for insolvency. What you may not know is that Medicare bankruptcy is closer than even the most pessimistic of previous estimates.

An annual report issued last week by the trustees of Medicare said the program won't have enough funds to pay full benefits by 2024, a full five years sooner than last year's estimate and one that may yet be even rosier than reality.

"Projected long-run program costs for both Medicare and Social Security are not sustainable under currently scheduled financing, and will require legislative corrections if disruptive consequences for beneficiaries and taxpayers are to be avoided," a summary of the report said.

Moreover, a statement issued with the annual report by Treasury Secretary Timothy Geithner said more must be done to boost financing for the program, such as "contain health-care costs," lest Medicare - and the government's other healthcare entitlement programs - become "unsustainable."

The truth is, the program has long since been "unsustainable," because for years it's been little more than a Ponzi scheme, as tax dollars from one generation are used to finance previous - and future - generations.

Investigative journalist John Stossel says what's really going on with Medicare is that the young are picking up the healthcare tab for senior citizens, even those who are financially well-off. And while today's Medicare recipients did, in fact, contribute to the program from their own paychecks when they were still working, experts Stossel says "the average Medicare beneficiary today collects two to three times more money than he paid in."

"We locked up Bernie Madoff for running a Ponzi scheme. Medicare is a bigger one," says Stossel.

Worse, the unfunded portion of Medicare is bad and getting worse. A 2008 assessment by the program's trustees found that Medicare's unfunded liability portion is $74 trillion, five times more than Social Security's unfunded liability. And the government only expects its healthcare outlays to grow.

One of the reasons why Medicare - and any government-run healthcare system, for that matter - is so expensive and an impediment to better healthcare in the first place is because it is a system that is inherently inefficient. And that built-in inefficiency is why so much Medicare money is wasted on entire industries like Big Pharma.

"While our health-care system has some of the most innovative treatments in the world, Medicare's payment system imposes many barriers to innovations in using those treatments efficiently and effectively," says John C. Goodman, president of the National Center for Policy Analysis. "In normal markets, cost efficiencies and quality improvements mean larger net revenues when an entrepreneur finds a better way to provide products or services. By contrast, entrepreneurial efforts under Medicare all too often find their greatest reward when they exploit the system by finding ways to bill more for more services, rather than improve it."

Goodman says studies show that patients - especially those who are chronically ill - "can often manage their own care as well as, or better than, conventional physician care, and at lower costs, when given the support they need."

Now that Medicare's officially broke, what better time to implement real healthcare reform and let people pursue their own, natural, solutions?

Learn more: http://www.naturalnews.com/032452_Medicare_bankruptcy.html#ixzz1Mvx92xOP

It is o.k. to reproduce this blog entry as long as it is copied in it's entirety and not altered in any way. For unbiased estimates or information regarding life insurance or fixed annuity savings account comparions; contact Randy Taylor below:

Randy Taylor Financial Services
Randy Taylor

(916) 601-5270

21 Ways To Increase Your Facebook Fanbase

2011-04-20T06:25:00.000-07:00

A COMPREHENSIVE OVERVIEW OF WAYS TO USE TIPS AND MEDIA TO INCREASE YOUR FACEBOOK FANBASE.

Randy Taylor
Become a Facebook fan: https://www.facebook.com/RandyTaylorFinancial
Youtube: http://www.youtube.com/watch?v=wIcVL3UqmdMWebsite: http://finsecurity.com/r
Life insurance and I.R.A. Account Specialist
Serving clients and brokers since 1983
(916) 601-5270

Creative Commons Copyright april 4, 2011
( It is o.k. to copy and distrilbrute this article if copied in it's entirety and not altered in any way.

Mari Smith offers several ideas of how to use different media including print media to increase traffic to and followers of your Facebook Fan Pages. While most of these tips can be automatically implemented by the beginner; you will still want to use a social media expert to help you add some features like widgets and embedding that are referenced. Facebook in itself may not be enough to generate leads for all businesses; but using the number one site in the world to enhance your brand cannot be questioned.
Mari's article in it's entirety is available below for your use.
21 Creative Ways To Increase Your Facebook Fanbase : By Mari Smith
by CVP Marketing Group on Monday, March 21, 2011 at 10:21am

21 Creative Ways To Increase Your Facebook Fanbase

By Mari Smith

(due to the disabling of the "suggest to friends" option in Facebook. I am posing this article by Mari. It has some very good ideas and suggestions for building your fans. You will find a few references to the "Suggest to friends" option. Remember, this has been disabled by Facebook at this time. It is time to get creative folks!

Greg)

If you build a Facebook Page, will fans come? This is the great hope for many businesses. However, fans do not magically appear from the Facebook mist.

People must be lured to your fan page. And there are some good and bad ways to go about doing this. In this article, I’ll share a big myth and 21 ways to drive more fans to your Facebook fan page.

(Although Facebook recently changed the “Become A Fan” button to the new, omnipresent “Like” button – and a fan page is called a “Business Page” or “Facebook Page” – we can still call them fan pages and people who join are fans!)

The Big Myth

There’s a great myth that once you create a Facebook fan page for your business, the first thing you should do to get fans is invite ALL your friends from your personal profile using the “Suggest to Friends” feature.

Unfortunately, this strategy may not be that effective and can, in fact, often backfire. I have seen many industry gurus complain that when they decline a fan page request, it’s frustrating to continue to be asked again and again.

There are several reasons not to use the Suggest to Friends feature:

• Facebook users can only like up to 500 pages and may wish to be selective. (Though I have seen it’s possible to go over this limit).

• Fan page suggestions may often build up, unnoticed. (At last count, I have 593 overlooked fan page suggestions and am already a fan of 500!)

• To aggressively pursue all your friends to join your fan page – for no apparent incentive – is counterintuitive to the nature of social media.

So, the good news is there are many ways to promote your fan page and proactively increase your fan base without bugging all your current Facebook friends, and also by thinking wider than just Facebook.

Here are 21 ways to get more fans for your Facebook fan page:

#1: Embed Widgets on Your Website

Select from a number of the new Facebook Social Plugins and place them on your website and blog. The Fan Box widget is now the Like Box and it works well to display your current fan page stream and a selection of fans -

You might also consider the Live Stream widget for more advanced uses. The Live Stream widget allows Facebook users to add their comments to a live event, for example, and that activity pushes out into their stream.

#2: Invite Your Email and Ezine Subscribers

Assuming you have an opt-in email list, definitely send out an invitation to your subscribers via email (several times, over time) letting them know about your fan page and encouraging them to join. Ideally, provide them with a description of the page and an incentive to join.

Be sure to have the Facebook logo/badge appear in your HTML newsletters. Instead of the usual “Join our Fan Page,” say something creative like “Write on our Facebook wall,” or “Join our Facebook community,” or “Come add your photo to our Facebook group” (where “group” is actually your fan page). Users have to be a fan in order to interact with your fan page in this way.

#3: Add to Your Email Signature Block

Instead of promoting your Facebook personal profile (if you do), include a link to your fan page in every email you send out. If you use web-based email, check out the Wisestamp signature addon.

#4: Make a Compelling Welcome Video

Create an attractive landing tab (canvas page) with a video that explains exactly a) what your fan page is about, b) who it’s for and c) why they should become members. The result: you’ll increase your conversion rate from visitors to fans. One of my favorite fan page welcome videos is by Steve Spangler, the Science Guy! After watching his video, you can’t help but want to join!

(By the way, with the new Facebook changes, if your custom welcome tab and video talk about clicking the “Become A Fan” button, you may want to change the wording to “click the Like button” now).

#5: Use Facebook Apps

I recently tested a new live video-streaming app called Vpype. The app adds a tab to your fan page called “Shows” and when you broadcast as your fan page, everyone can view by default. (You can also broadcast as your personal profile and selectively invite friends/friend lists). By announcing via Twitter, your personal Facebook profile, your blog and your email list, you can broadcast regular live Internet TV shows from your fan page and create much buzz.

Another example of app integration is Target’s “Bullseye Gives” campaign. Target had their fans vote on which of ten charities they most wanted to see the company donate to. By voting, a post goes out onto your Facebook wall and into the News Feeds of all your friends, thus providing Target with valuable exposure.

#6: Integrate the Facebook Comment Feature

My favorite example of this is the t-shirt company Threadless. On their landing tab (canvas page), you can view and purchase t-shirts as well as Like and comment on any item and choose to have that comment posted to your Facebook profile. Threadless actually has their landing tab set up so visitors don’t have to become a fan to purchase/comment/interact. Yet they have organically built well over 100,000 fans.

As users comment on items, that activity is pushed out into their stream (profile wall and their friends’ News Feeds), which creates valuable viral visibility for your fan page.

#7: Get Fans to Tag Photos

If you host live events, be sure to take plenty of photos (or even hire a professional photographer), load the photos to your fan page and encourage fans to tag themselves. This, again, pushes out into their wall and friends’ News Feeds, providing valuable (free!) exposure. And, a picture says a thousand words – we notice the thumbnails in our feed more than text.

#8: Load Videos and Embed on Your Site

Facebook’s Video feature is extremely powerful. You can load video content to your Facebook fan page, then take the source code and embed on your blog/website. There is a “Become a Fan” button right in the video itself. For an excellent tutorial, see Nick O’Neil’s post: How To Get Thousands of Facebook Fans With a Single Video.

[UPDATE: Since Facebook changed the Become a Fan button to the Like button, embedded Facebook videos now display a white watermark hotlink of the Facebook name in the upper left corner of the video player. This is a clickable link that goes to the original video page on your fan page. If the visitor to your site clicks through to Facebook from your video, and they are logged into Facebook at the time, they will see a Like button at the top left corner of the video player.]

#9: Place Facebook Ads

Even with a nominal weekly/monthly budget, you should be able to boost your fan count using Facebook’s own social ad feature. It’s the most targeted traffic your money can buy. To buy an ad, scroll to the foot of any page inside Facebook and click the link at the very bottom that says “Advertising.” From there, you can walk through the wizard and get an excellent sense of how many Facebook users are in your exact target market.

Then, when you advertise your fan page, Facebook users can become a fan (click the Like button) right from the ad. Additionally, Facebook displays several of your friends who have already liked you, thus creating social proof.

#10: Run a Contest

This is somewhat of a gray area because Facebook changed their Promotional Guidelines last year. Essentially, you need prior written permission from Facebook and need to be spending a significant amount on ads per month. However, you CAN require Facebook users to become a fan of your fan page in order to enter a contest, sweepstakes, drawing or competition. PLUS, good news: you CAN run contests and sweepstakes with the use of the apps created by Wildfire App.

#11: Link to Twitter

Link your Twitter account to your Facebook fan page and automatically post your Facebook content to Twitter. You can edit what gets posted, choosing from Status Updates, Photos, Links, Notes and Events.

You have 420 characters on the Facebook publisher and 140 on Twitter. In the tweet that goes out, Facebook truncates your post past a certain character count and inserts a bit.ly link back to your fan page. To track click-through stats on that link, just paste the bit.ly link that Facebook created for you in your browser’s address bar and add a “+” sign to the end. This works for any bit.ly link!

I also recommend you promote your Facebook fan page on your Twitter background and possibly in your Twitter bio/URL field too.

#12: Get Fans to Join Via SMS

Your fans can join your fan page via text message! You’ll need to get your first 25 fans and secure your username. Then, to join your fan page, Facebook users just send a text message to 32665 (FBOOK) with the words “fan yourusername” OR “like yourusername” (without the quotes).

This feature is ideal when you’re addressing a live audience, say. Have everyone pull out their mobile phones and join your fan page on the spot! This would also work well for radio or TV. (Note that this only works for Facebook users with a verified mobile device in his or her account.)

#13: Use Print Media

Look at every piece of print media you use in your business. Your Facebook fan page (as well as Twitter and any other social sites you’re active on), should be clearly displayed. Put your Facebook fan page link (and the logo) on your business cards, letterhead, brochure, print newsletter, magazine ads, products, etc.

#14: Display at Your Store/Business

If your business is run from physical premises, put a placard on the front desk letting your customers know you’re on Facebook. Ideally, you have a simple, memorable username. Incentivize customers to join right away via their mobile device and show you/your staff the confirmation for some kind of instant reward!

You might give out physical coupons promoting your fan page. For restaurants, put the Facebook logo, your username and a call to action on your menus.

I was at a hotel in San Francisco last fall and they had a placard in the elevators promoting their presence on Facebook and Twitter. The sign was very noticeable because of those ubiquitous Facebook and Twitter logos/colors!

#15. Add a Link on Your Personal Profile

If you’d like to promote your fan page to your Facebook friends, just under your photo on your personal profile there is a section to write something about yourself. I call this the “mini bio” field and strongly suggest adding a link to your fan page like so:

Be sure to format the URL with http:// otherwise it will not be clickable with just the www’s. You have a limited amount of characters, so keep it succinct and leave out the www’s. You can put in hard line breaks though to make the content easier to read.

#16: Add a Badge/Button to Your Profile

Using an app like Profile HTML or Extended Info, you can create your own custom HTML, including a Facebook badge and/or graphic embedded, as shown in the screenshot below:

#17: Use the Share Button

The Share button is all over Facebook and is a very handy feature. It only works for sharing on your personal profile. So periodically go to your fan page, scroll toward the bottom left column and click the “Share+” button. Add a compelling comment along the lines of exciting news, recent changes, special incentives, etc., happening on your fan page and invite your friends to join if they haven’t already. I find the Share button far more effective than the Suggest to Friends approach. (And, if you’d like to Share content from the web on to your fan page vs. profile, I highly recommend using the Hootlet bookmarklet tool at HootSuite.com).

#18: Use the @ Tag

As long as you’re a fan of your own fan page, you can “@ tag” it on your own personal profile wall. From time to time, you can let your friends know about something happening on your fan page by writing a personal status update that includes tagging your fan page with an @ tag. Simply start typing the “@” symbol and the first few letters of your fan page name (this works whether you have your username registered or not), and it will appear from a drop-down menu to select. This then makes it a nice, subtle hyperlink that your friends can choose to click on.

#19: Autograph Posts on Other Walls

A subtle way to gain more visibility for your fan page is to add an @ tag for your fan page when writing on your friends’ walls as a way to sign off.

I would use this one sparingly and, again, monitor the response from your friends. I have never been a fan of adding a signature block on Facebook wall posts because our name and profile picture thumbnail are always hyperlinked right back to our profile anyway. But the simple @ tag could be effective.

#20: Autograph Other Fan Pages

As with adding your fan page @ tag to posts you make on your friends’ walls, you could equally use the same technique when posting on other fan pages. This needs to be used with discretion and I would advise against doing this on any potentially competing fan page!

#21: Maybe Use “Suggest To Friends”

I won’t rule this one out completely as it does depend on how many friends you have, your relationship with your friends, how often you suggest fan pages/friends to your friends, etc (see ‘The Big Myth’ above). But I do recommend monitoring the response to this technique – perhaps simply by asking for feedback in your status update.

Reprint offered by: Randy Taylor Financial Services
Licensed since 1983
Over 4,000 insurance and annuity clients served
1(916) 601-5270

6 COMMON TAX ERRORS

2011-04-07T10:17:00.000-07:00

AVOID THESE 6 COMMON TAX FILING ERRORS:

THE WALL STREET JOURNALS'S 30 LAST MINUTE TAX TIPS NOTES THE
FOLLOWING INCOME TAX REPORTING ERRORS TO WATCH FOR:

OVERSTATING CHARITABLE DEDUCTIONS

DEDUCTING MORTGAGE POINTS INCORRECTLY

OVERLOOKING THE "kiddie" tax.

MISSING THE MAKING WORK PAY CREDIT

OMITTING SMALL INTEREST PAYMENTS

ROTH CONVERSION ERRORS AND FILING EXTENTIONS

* The final word is that you are best advised to always seek the counsel of
a trained tax professional so that you don't miss important deductions or file
incorrectly. This summary is an excerpt from The Wall Street Journal and not meant
to be taken as tax advice.

In the Sacramento Valley I recommend:
George De La Mora at (916) 760-2480 Elk Grove
Lani Coggins at......(916) 773-7053 Roseville
Kenneth Cone at......(408) 859-3109 Natomas/ Sacramento
Michael Row .........(916) 601-7064 For Quick Books Help, etc.

8 Most Common Tax Audit Triggers. California or Federal

2011-04-05T22:50:00.000-07:00

THE I.R.S. HAS ADDED MORE AUDITORS. AVOID MAKING COMMON MISTAKES THAT CAN TRIGGER AN AUDIT.
( The following article is reprinted for entertainment only. You should consult with your tax preparer before filing your taxes or for tax advice.)

The April 2nd, 2011 Wall Street Journal warns against 8 Audit Triggers to Know About:

Mortgage Interest Deductions Over $50,000.

Large charitable contributions, especially of non-cash items.

Schedule C business losses of more than 2 years in a row.

Home-buyer tax credit.

Rental Real Estate, especially with losses.

Payouts to subchapter S owners who earn little or no compensation.

Large Deductions in relation to income,especially for business
travel or entertainment.

Home Office - maybe if high.

The final word is that you are best advised to always seek the counsel of
a trained tax professional so that you don't miss important deductions or file
incorrectly. This summary is an excerpt from The Wall Street Journal and not meant
to be taken as tax advice.
For IRA product options call me directly: Randy Taylor 1 (916) 601-5270
FOR SPECIFIC TAX ADVICE:
In the Sacramento Valley I recommend:
George De La Mora at (916) 760-2480 Elk Grove

Free Financial Worksheet Links

2011-03-31T21:50:00.000-07:00

FINANCIAL CALCULATORS ARE A SIMPLE WAY TO PLAN FOR RETIREMENT.

Please click on the website link below for quick and easy interactive financial calculators on the following topics:
Financial Worksheets

The worksheets that follow can be used to help put your "financial house" in order, as well as to help ease the burden of uncertainty that most families experience after the death of a loved one.

Be sure to contact my office if I can assist you with any of the planning needs covered by these worksheets.

# Budget Organizer
# Balance Sheet
# Bank and Brokerage Accounts
# Retirement Plan Inventory
# Life Insurance Inventory
# Professional Advisors
# Document Checklist
# Personal Property Disposition
# Business Disposition
# Funeral Instructions
"For the forms go to: http://www.finsecurity.com/r

LIFE INSURANCE, NO EXAM NEEDED

2011-03-31T11:29:00.000-07:00

LIFE INSURANCE, NO EXAM NEEDED

Sacramento County Housing Trends Look Bleak

2011-03-21T20:40:00.000-07:00

SACRAMENTO COUNTY HOUSING INVENTORY IS UP FROM LAST YEAR. HOUSING PRICES ARE STILL ON THE DECLINE.

For details or more information: Randy Taylor (916) 601-5270
The website data and charts listed below suggest that it is still a buyer's market with many houses pending; but at reduced prices due to the number of properties offered as short sales and foreclosures. Many experts suggest that California real estate will stay level with little change up or down in sales prices in the near future. This most recent report is provided courtesy of Jim Hamilton of Lyon Real Estate. For more details on housing in the Sacramento County market; use the link below:

www.JimHamiltonRealEstate.com

For details or more information: Randy Taylor (916) 601-5270

U.S. Surpasses France for wine consumption !

2011-03-18T06:43:00.000-07:00

CONCERNED ABOUT ECONOMIC GROWTH? THE UNITED STATES WINE INDUSTRY IS NOT! SALES ARE UP WITH CAIFORNIA LEADING THE WAY!
This reprint discusses the financial health of the California and United States wine industry.

March 15th, 2011 05:40pm

U.S. thirst for wine passes that of France for first time

By Jeff Quackenbush, Business Journal Staff Reporter

Print Friendly

The long-held place of France as the top market for wine in the world fell to the U.S. last year, according to data released today by wine industry consultants Gomberg, Fredrikson & Associates.
Shipments of wine to the U.S. from producers in California and other states and countries increased 2 percent to a record of nearly 330 million 9-liter cases last year from 2009 (see chart), the Woodside-based firm estimated in its periodic The Gomberg-Fredrikson Report. That amounted to a retail value of $30 billion, an increase of 4 percent in that timeframe.
Wine shipments in France totaled 320.8 million in the fiscal year 2009-2010, according to the report.
California wine made up 61 percent of U.S. wine volume sales, or 199.6 million cases worth $18.5 billion at retail. That was an increase of 1 percent from 2009 sales. California’s total wine shipments worldwide to all markets in the U.S. and abroad (including exports) were 241.8 million cases, up 2% from the previous year.
Jon Fredrikson noted the timing of the U.S. market’s consumption surpassing that of France at the dawning of the 20th year since the “French paradox” broadcast by CBS’ 60 Minutes news program on the correlation between moderate wine consumption and health. That led to a marked shift in red wine consumption.
“Wine consumption is still a low 2.6 gallons per capita, but the adult population is growing every year as echo boomers come of age and adopt wine just as their baby boomer parents did,” Mr. Fredrikson said.
Catching and retaining consumer interest last year were “creative” new wines, including value-priced muscat, pinot grigio, riesling, off-dry wines and affordable inland California pinot noir, he said.
Mr. Fredrikson observed that sales of high-end wines remained challenging in 2010, but marketers used social media technology to reach consumers.
Bobby Koch, president and chief executive officer of San Francisco-based trade advocate Wine Institute, said wine sales will continue to grow in the U.S. despite competition from beer and spirits.
“Americans are increasingly interested in a lifestyle with wine and food, demonstrated by the presence of wineries in all 50 states and 17 consecutive years of growth in U.S. wine consumption,” he said.
California chardonnay continued to be the top-selling variety in the U.S., with more than 53 million cases sold in 2010, an increase of 5 percent from 2009, according to Mr. Fredrikson.
California bottled varietal wine also growing notably in sales were pinot noir, zinfandel, riesling and muscat.
Sparkling wine sales in the U.S. increased 10 in 2010, suggesting that consumers may be broadening their use of these wines beyond special occasions, according to The Gomberg-Fredrikson Report. The category’s 15.4 million cases, mostly made in California, represent 4.6 percent of all U.S. wine sales.

Free Networking Meetings

2011-03-14T16:19:00.000-07:00

Puzzled with the new economy and the strains on your advertising budget?

Successful Thinkers is a new idea that is rapidly growing and sweeping the nation by providing small buisness owners a way to network and learn to expand their business sales for free . That's right; It's for free.
There are weekly meetings in most major cities in and around the Sacramento area where people can meet others, exchange ideas, and hear educational presentations with no strings attached!
Feel free to contact me by email for a meeting location near you and then sit back and watch your business grow as you meet and make new friends.
Randy Taylor
Follow my blog :www.lifeandannuitysite.com
Website: http://finsecurity.com/r
Life insurance and I.R.A. Account Specialist
Serving clients and brokers since 1983
(916) 601-5270

How to access free Copyright Advice

2011-03-12T10:09:00.000-08:00

COPYRIGHT TIPS FOR YOUR BLOGS OR SPEAKING HANDOUTS
(Reprint from Creative Commons Website: http://creativecommons.org/choose/
I think you will appreciate the tips and suggestions offered below from the Creative Commons Website. This blog post is offered for comparison only versus other free licensing websites and not meant to be offered as legal advice.

With a Creative Commons license, you keep your copyright but allow people to copy and distribute your work provided they give you credit — and only on the conditions you specify here. For those new to Creative Commons licensing, we've prepared a list of things to think about. If you want to offer your work with no conditions attached, or you want to mark a work that is already free of known copyright restrictions and in the public domain, choose one of our public domain tools.
When you choose a license, we provide you with HTML you can use to add the license information to your site and information on how to select a license on one of several free hosting services that have incorporated Creative Commons. This is not a registration and we do not retain a record of your selection.
This blog post is not meant to be legal advice but is merely the sharing of an article that seems have value for entrepeneurs.

The link for this site is : http://creativecommons.org/choose/

"Stretch IRA" concept has advantages for Beneficiaries

2011-02-25T17:22:00.000-08:00

How The "Stretch Concept Works"
As we just stated, the stretch concept allows an IRA to be passed on from generation to generation. However, in doing so, the beneficiary must follow certain rules to ensure he or she doesn't owe the IRS excess-accumulation penalties, which are caused by failing to withdraw the minimum amount each year.

Primary Benefits of the Stretch Concept

Tax Deferral
The primary benefit of the stretch provision is that it allows the beneficiaries to defer paying taxes on the account balance and to continue enjoying tax-deferred and/or tax-free growth as long as possible. Without the stretch provision, beneficiaries may be required to distribute the full account balance in a period much shorter than the beneficiary's life expectancy, possibly causing them to be in a higher tax bracket and/or resulting in significant taxes on the withdrawn amount.

Flexibility
Generally, the stretch option is not a binding provision, which means the beneficiary may choose to discontinue it at anytime by distributing the entire balance of the inherited IRA. This allows the beneficiary some flexibility should he or she need to distribute more than the minimum required amount.

Benefits for Spouses
A spouse beneficiary is allowed to treat the inherited IRA as his or her own. When the spouse elects to do this, the stretch concept is not an issue, as the spouse beneficiary is given the same status and options as the original IRA owner. However, should the spouse choose to treat the IRA as an inherited IRA, then the stretch rule could apply.

Conclusion
If you are interested in having the stretch concept apply to your IRA, consult your current IRA provider or financial institution. If they seem unfamiliar with the term, ask specific questions: will the beneficiary be allowed to take distributions over a life-expectancy period? Will the beneficiary be allowed to designate second- and subsequent-generation beneficiaries? If the answer to these questions is yes, then you are able to use the stretch concept with the IRA.

If the answer is no, then you may want to discuss the possibility of making such allowances with your IRA provider. Most IRA providers would rather make such allowances than have their customer transfer his or her IRA to another financial institution that can accommodate his or her needs. Finally, be sure to consult with your tax and financial professional for assistance with making beneficiary designations that suit your financial profile and your wealth-management goals.

This article is an excerpt from a public post that should not be construed as giving, tax or legal advice..

by Denise Appleby,CISP, CRC, CRPS, CRSP, APA

CNBC News Panel Discusses Safety of Indexed Annuity Retirement Idea

2011-02-15T20:05:00.000-08:00

Check this video recorded by CNBC News panel which discusses the safety and yield potential of indexed annuity savings accounts:

CNBC Indexed Annuites

www.youtube.com

Indexed Annuities Offer the Following Key Benefits to Consumers:
Income tax deferral on interest earned.
Safety of Principal in any market if held for the term chosen.
A guaranteed income option available for a low fee of approximately 1/2%
Probate Avoidance at Death.
Call the author of this blog below for specific contract provisions and details.
1(916) 601-5270
This blog entry is not meant to give tax or investment advice. Consult with your CPA, attorney, or
other financial professional before purchasing any retirement savings products.

Creative Commons License Financial Services Advice From Randy Taylor by Randy Taylor is licensed un. Simple template. Template images by Maliketh. Powered by Blogger

Keeping Your Financial Advisor Honest #3: Variable Life as an Investment

2011-02-03T08:50:00.000-08:00

Variable Universal Life Insurance Plans: A tax deferred blessing, or a risky time bomb?

( The purpose of this article is obvious: I am seeing a trend recently from marketing agencies and financial advisors recommending indexed or variable universal life insurance policies where they not suitable.)

Question: " I have a permanent life insurance need and my insurance agent recommended a Variable Universal to me stressing the following advantages: Income tax deferral growth, and tax free loans? What is the catch? Should I consider this in lieu of an IRA account or other long term investments? "

The answer: This may not be the best alternative for you as an investment vehicle due to internal fees and mortality charges; even though permanent life insurance still has value as a cornerstone of any financial portfolio.

Negatives to consider: What you may not know about policy loans:

1.) If you need to take tax free policy loans they reduce your beneficiaries death benefit proportionately. Every loan not repaid reduces the life insurance.

2.) The interest on policy loans is reasonable; but it compounds yearly until repaid and reduces the cash value available for retirement income. It is not repaid if your goal is income.

3.) If your policy investment sub accounts do not perform as expected or the insurance company raises the internal cost for the insurance benefit (They can do that) ; you can run out of cash values and be faced with a SERIOUS dilemma: income taxes on the prior loans (Those used for income and not paid back) will be due immediately in the year that the policy lapses.

What you may not have been told about expenses and fees:

Before you can realize a net gain in any given year you must first earn enough interest to cover yearly fees and the basic cost of the insurance inside the policy. This can easily be from 3% to 5%. in addition to the insurance cost. When you factor in that the cost of the insurance can be raised; your premium and cash values cannot be projected accurately. F.I.N.R.A, the police dog for these types of policies, requires that the agents and companies show how the policy will perform at both current, midpoint, and zero percent rates.

What are other options if I still plan to keep my life insurance for a lifetime?

First of all, An objective advisor will be looking at your entire financial picture based on your goals; in order to determine whether you need a permanent or temporary life insurance solution.

Permanent Life insurance with guaranteed level premiums.

1.) No lapse universal life: These plans are low cost permanent solutions; stripped of their cash values for the most part but feature: Guaranteed level premiums and guaranteed level insurance for up to your age of 120; should you live that long. These are very suitable in most cases; but not designed to build cash values.

2.) Traditional Whole Life Policies. The premiums and insurance are guaranteed to be level for life with dividends being credited to the policy in years when the insurance company declares them. They have safe guards that universal life plans do not offer but require very high minimum premiums.

3.) Indexed Universal Life Plans: You have a potential for tax deferred growth based on index choices such as the S&P 500; but as with all universal life plans; the internal basic life insurance cost can be raised in the future; which would reduced your yields proportionately. They have some internal safeguards and flexibility within; but have several moving parts; so a consultations with an advisor is needed.

In summary, There is no type of life insurance that is best for all. Please see my Jan. 4, 2011 blog entry for a layman's summary of different insurance types. If you need life insurance for permanent needs and not as a temporary solution; consider the fact that the computer projections for life insurance cash are based on history which is no guarantee of future performance. Also consider that fees in most permanent life insurance are higher than other investments which might be suitable for you. Permanent life insurance often makes more sense than a temporary 10 or 20 year, plain vanilla, level term insurance policy; but you are best advised to consider a guaranteed, no lapse universal life plan for permanent needs unless you have a clear need for additional tax deferral in addition to your other savings vehicles.

I also recommend that regardless of the plan chosen you ask for a comparison spreadsheet of the top 5 companies for product performance and also for financial strength ratings. Demand a vital signs report which would be free.

I have advised both consumers and financial advisors for over 27 years. Feel free to contact me directly for more information. This is not offered as direct investment advice. Please contact your CPA, attorney, or other professionals for advice regarding your specific situation.

Creative Commons License Financial Services Advice From Randy Taylor by Randy Taylor is licensed un. Simple template. Template images by Maliketh. Powered by Blogger.

KEEPING YOUR FINANCIAL ADVISOR OR INSURANCE AGENT HONEST

2011-01-11T21:52:00.000-08:00

Article #2 in the series: How to evaluate and compare an insurance company for financial strength.
Ask your advisor for a "Vital Signs Report" for any insurance company you are considering.

A "Vital Signs" report is an objective spreadsheet that summarizes and compares up to 8 insurance companies on 1 page; for several important financial safety criteria. This can help protect you from a biased or commission driven advisor from offering a company to you that is considered less than acceptable by honest and client focused advisors. You can even specify which companies you would like to compare.

What kind of information is on a Vital Signs Report?
First of all, 5 different and qualified rating agencies analyze key criteria such as the relative risk inherent in any insurance companies investment portfolios, asset growth, bonds in default and what types of investments the carriers are holding.

How can a layman interpret the results? This is made easy for you.
Each of the 5 rating services assigns a percentile rating to each carrier on the report.
The 5 ratings are then averaged and assigned a composite rating known as a "Comdex percentile" The higher the number, the safer the company is considered to be. My opinion is that an insurance company should have at least an 80% Comdex rating.

Aren't all insurance carriers about equal?
Not really. The example attached shows for example, that Transamerica Life has a strong Comdex rating of 93%; an elite number;while the well known AAA has only a 60% rating.

Are there safeguards for doing business with companies licensed in California?
Yes, there is a California Guarantee Association that protects the consumer up to certain limits for life insurance and annuity claims; but an agent is not allowed to discuss that with you prior to a sale since it is considered unfair marketing.
In summary, you should not only expect your advisors to make product recommendations from companies that are competitive; you should also ask for a financial safety comparison of the specific company recommended versus other companies that your advisor has researched. The vital signs report is an industry standard that is recognized and used by the more diligent advisors.
This article is not offered as investment advice; but is offered as a tool to help the layman compare insurance companies for financial strength.
A sample report is available by calling the phone number below and leaving your email address.
Randy Taylor
1(916) 601-5270

Mayo Clinic Reports on Several Cold Remedies

2011-01-10T07:07:00.000-08:00

The Mayo Clinic has published a very detailed and interesting summary of which over the counter and natural cold may work or be over hyped. You will find it informative to see their findings on remedies like chicken soup, antihistamines, and over the counter treatments from tylenol to Zinc; like Zicam. Read this summary which includes expert blogs: " Cold remedies, What works, What doesn't" http://tinyurl.com/2fhn4c

Social Security Information nicknamed Social "Insecurity"

2011-01-06T18:11:00.000-08:00

The governments obligation to pay out social security benefits to a rapidly growing number of baby boomers seeking retirement may result in higher taxes or reduced benefits. It is important that Americans set aside money for retirement and also protect current supplements to company pensions, IRA savings, and other savings.
Please review the Time Magazine summary taken from my website library below for key factors affecting your potential retirement payment.:
Important Facts about Social Security Benefits.

KEEPING YOUR FINANCIAL ADVISOR OR INSURANCE AGENT HONEST

2011-01-04T17:24:00.000-08:00

Article #1: Funding your child’s college education: Scam or Savior ? : Tax-free policy loans from life insurance policies as a savings or income producing vehicle for your child may not provide enough income. Read this blog to see the pros and cons.

Pros: A properly designed life insurance plan can provide a death benefit to provide for college or other expenses as well as a tax-deferred savings vehicle with tax free policy loans. This only works though if the policy is designed with the client’s interest first.

Buyer Beware: First: It is illegal for an insurance agent or advisor to refer to a life insurance premium as an investment or a contribution. It must be designated as a premium,. Second: An improperly designed life insurance policy that uses a normal premium schedule will pay your agent handsomely but not provide you with enough savings. Using life insurance as an investment vehicle for the sole purpose of paying for your child’s college education may not work unless you pay attention to careful principles outlined below:

How to design your policy properly if at all:

“Overfund” your policy with cash but follow the IRS Guideline Premium Tests: In general, a single deposit is the best way to do this since the savings element of the policy has the potential to grow more quickly. Important , If you exceed the Single Premium guideline premium rules; all policy loans may be taxable; not tax –free.

You can also use a premium schedule of 7 years or even an ongoing guideline level premium . To make sure that your agent is not designing the policy to have a higher commission and consequently; a smaller savings element; ask him to show you on the required computer printout what the single, 7 payment, and guildeline level premiums are. You are best suited to pay the maximum under these guidelines without exceeding them. They are disclosed on all insurance company official printouts.

Allow 15 years or longer for the savings to accumulate: The policies work on compounded tax-deferred interest. If a child is already 10 years old for example, and enters college at age 18; there would only be 8 years or so before the first loan is taken out. Therefore there usually would not be enough time to accumulate interest.

Ignore computer projections that are illustrating 10% ;to 12 % returns. Even indexed universal life insurance plans that have some built in safety factors; often over estimate the yearly expected returns. If an insurance company were to actually deliver these high interest rates routinely; they would have to increase the internal charges for the insurance. Increasing the insurance costs; reduce your yearly yields.

Plan on keeping the life insurance in force until death. If the policy is surrendered loans in excess of your cost basis may be partially or completely taxable.

This is important. You cannot defer taxes on life insurance , tax income and then cancel an insurance policy without having a potential for taxes to be due.

In summary while most advisors are honest; you should protect yourself somewhat by working with a broker that will compare several companies for cash values and company financial stability. Ask also for a “ Vital Signs” comparative report which shows the different companies financial ratings from 5 different 3^rd party sources. A single A.M. Best report is usually not enough. This article is not meant to given tax or investment advice. Always consult your accountant, attorney, for more specific advice.

SAFE ALTERNATIVES TO BANK C.D. ACCOUNTS

2010-12-28T12:53:00.000-08:00

I reported in the Gold River Community Newspaper earlier this year that: "Yields for safe investments like c.d.s and treasury bills are down." Smart investors that need safety, tax deferral, and probate avoidance are looking towards traditional fixed annuity savings accounts that feature higher before tax yields; and tax deferral until the money is spent or the owner dies. Current 5 year bank c.d. rates are under 3% with the interest taxed as earned. (Source: Bank rate .com)
The bottom line is that there are safe alternatives to traditional accounts that can offer higher yields even if your goal is to take immediate income.

5 year Guaranteed Annuities : These accounts feature a locked in rate for 5 years while the interest unlike a bank c.d. is tax deferred until received by the owner or a beneficiary.
The annuity owner can start spending the interest after 30 days; or defer taking the interest until retirement. Some companies allow a complete refund at any time. Consult your broker for a rate search comparison and advice.

Indexed Annuities: These feature 2 different interest crediting methods within the same account: 1.) Interest is determined by yearly or monthly changes in an external index; such as the S&P 500. Unlike a mutual fund; you cannot lose principal if the product is held until the end of a term; usually 7 to 10 years.
2.) High Guaranteed interest crediting for income purposes only. Some companies feature guaranteed crediting on a separate income account of as high as 7% compound interest with no fees on the income account at all. that means a deposit would double for income purposes in as little as 10 years. These accounts charge around 1/2% fee annually on the first account if you surrender or re-invest the money. There is no fee against the income rider account which makes them ideal for IRA or other retirement monies.

Immediate Annuities: These feature immediate guaranteed income that you cannot outlive; but on the downside are designed for income only and not as flexible as the other accounts above if you need emergency cash. They often can be used as a vehicle for protection from creditors since you give up control of the principal in exchange for high guaranteed income.

In general, if you want safety, future income from existing assets, tax deferral, and probate avoidance; annuities of all types out perform most safe savings vehicles. This article is not meant to be taken as investment or tax advice and it is recommended that you always consult with an honest and capable planner, insurance broker, as well as your tax advisor or attorney while making financial decisions.

What Type of Life Insurance is Best?

2010-12-13T19:48:00.000-08:00

Life insurance can be made simple: Even though there are several plan categories and names; there are only 2 distinct types: permanent and temporary life insurance, There is no 1 company or insurance plan that is suitable for all situations.. The main thing you need first is an experienced and objective broker that represents several of the top insurance companies without any quotas or product bias.

TEMPORARY NEEDS:Guaranteed level term insurance.: The rates are guaranteed to stay level with no rate increases for 10,15,20, or 30 years. This is pure insurance with no cash values attached; but as a result it is less expensive for short term needs like covering the liabilty of a mortgage obligation than any other insurane type.

Level term with a premium refund at the term end: This is called return of premium and refunds all paid premiums if you are alive at the end of the term. In general, the 30 year plan is a great solution for mortgage life insurance since it is reasonably priced and refunds all premiums if you quit the policy in 30 years.
You normally have the option of keeping the insurance after the term is up; but you are guaranteed a refund of all premiums paid if you decide to take the refund and cancel the insurance.

No lapse universal life, guaranteed to age 120: This is often the least expensive way to insure a person's life over their entire lifettime; even if you live to age 120! It features low premiums that never change even if you live to age 120. This does not have increasing cash values; but is a lower commission to the agent, and a lower premium to you as a result.

Cash value permanent plans: These are typically sold as a supplement to retirement through policy loans that are tax free. This is often sold where it should not be and requires an objective broker that can advise you of BOTH the pros and cons of this insurance.

Whole Life Plans: These feature guaranteed level premiums but can be as much as 3 times the yearly premium commitment of a universal life that features less cash build up at a much lower cost. Contact me directly for a no obligation rate search of the top 100 insurance companies for your specific need. Refer to specific policy wording for details on any policy offered to you.

Randy Taylor
Randy Taylor Financial
Serving over 4,000 clients for over 27 years!
1(916) 601-5270

Tax Deferred Savings Accounts Tied to the S&P Stock Index

2010-12-01T17:03:00.000-08:00

Indexed annuities:
I have published articles nationally and at the state level on this concept since their inception, 1998. Please call me for more details at (916) 601-5270.

Indexed annuities are unlike any product in the marketplace. By legal definition they are a fixed annuity product, but with greater potential returns than those provided with guaranteed rate annuities. All fixed annuities feature not only safety of principal; but also minimum interest guarantees.
Indexed annuities allow you to benefit from potential gains when the stock market is up, but also prevent you from being penalized when it’s down. Unlike a variable annuity or mutual fund, the risk of losing your money due to a market decline does not exist with indexed annuities. So even if the stock market were to go down in value, your annuity contract value can never decline:
IN A DOWN YEAR ZERO % IS ADDED TO YOUR ACCOUNT INSTEAD OF A NEGATIVE. THAT MEANS YOU GET TO KEEP ANY PRIOR YEARS INTEREST. (See attached chart for an example) . In addition, like all fixed annuities, you’re protected by a lifetime guaranteed interest rate.

Income enhancement riders:
You can give up about ½% of your gain and add a rider that guarantees a high guaranteed crediting rate for income purposes of as much as 8% until income is taken. I recommend a computer printout example based on your age of how this gives you high guaranteed income no matter what the market indexes do!
As stated above, Indexed Annuities offer the potential of higher returns without exposing principal to market risk. In exchange for this guarantee of no downside risk, Indexed Annuities policyholders must generally be willing to give up some of their upside market potential. In exchange for having their retirement assets fully protected from loss (and in fact, a gain is guaranteed) an indexed annuities owner shares in market gains without realizing 100% of the gain or 100% of the loss. IN A DOWN YEAR 0% IS ADDED TO THE ACCOUNT, NOT A NEGATIVE. (See attached chart for an example). For most individual investors who have recently been stung by market volatility, this constitutes a prudent and desirable trade-off.

All of this is usually accomplished by linking (indexing) the credited rate to an equity index, such as the S&P 500 Composite Stock Index. To repeat: although the credited rate is linked to stock market performance, safety of principal is assured. A decline in the stock-market will NOT reduce the asset value of indexed annuities.

For a more in depth discussion of indexed annuities, their features and benefits as well as various product designs, please contact: Randy Taylor at (916) 601-5270. Resident License number since 1983 : 0643596

CNBC NEWS VIDEO OPINION: The client calls in and the news panel gives candid comments about the gains realized in the sideways market; and also on safety: Copy this link to your url address or simply click here:
http://www.youtube.com/watch?v=iOyXfcB9r6s

( Feel free to request a vital signs report on any insurance carrier. The report is free and will disclose financial strength ratings from 5 different rating services.)

About Randy Taylor

2010-11-30T16:56:00.000-08:00

Randy Taylor has provided unbiased life insurance and/or retirement advice to both clients and financial advisors for over 25 years. He has also spoken at the state and national levels to groups such as Waddell & Reed Financial, New York Life, and the National Direct Response Convention. His mission is to provide unbiased solutions to clients seeking: safety, tax deferral, and retirement income. He also helps with life insurance rate comparisons.