Retire in Style

Human beings are distinguished from other species by our ability to think ahead and to plan ahead. However, most of us have great trouble thinking about the long term and preparing for it. We're too caught up in the hectic schedules of our day-to-day lives. Heck, it's difficult enough to plan something just six months ahead, like a summer vacation. How on earth are we supposed to be able to think about something in the distant future -- like retirement?

Thinking in advance, though, and acting on those thoughts, are keys to preparing for the future. The younger you are, the more distant is retirement -- and the more power you have at your fingertips in the form of compounded returns over time. That is why now is the time to start investing in your future so that you can benefit from these compounded returns in your retirement years.

Alero Mack, of Alero Equities, is a specialist in retirement planning, and can lend lend his insight to help us answer the important questions on retirement planning.

• How much will I need for my retirement in order to live comfortably?

• What are my goals?

• When should I start?

• What should I do?
  

• How much can I count on from Social Security?

• What costs might I run into once I've actually retired?

These are the questions that we all need to ask; questions that we often wait too long to ask. However, now is the best time to make these choices to ensure that you and your family are taken care in the years ahead.

Please contact us at 866-354-5125 or by email to discuss your retirement goals in person.

Take a moment to watch these instructional videos on

• "Click Here --> Watch a Video on How to Create Wealth" and

• "Click Here --> Watch a Video on How to Eliminate Debt"

Alero Equities Knows Where to Park Your Cash (In 2009)

Now's the time to invest! David and Tom Gardner's new book reveals their strategy for million dollar wealth.

You have money, you need a place to put it for a while and the financial institutions are lining up at the door. You may be tempted to fall for whatever suitor makes a good first impression, but remember: This choice is all about you.

The best short-term savings account is the one that best matches your needs in the following areas:

Access: How often will you need to dip into the account, and what's your preferred method of access -- ATM, check-writing, online, and the like?

1. Interest: How much will the institution pay you for babysitting your money, and does the amount you need to park in the account qualify for the best rates?
2. Service: Might you require bells and whistles, such as in-person customer service, or are you more of a DIY, low-maintenance customer?
3. Penalties: Should your plans change -- you need to get to your moola sooner than planned, for example -- how harsh of a punishment will you need to endure?

Now, let's review the major aspirants:

Checking accounts

Checking accounts are meant for transactions, not savings. That's why many don't pay much, if any, interest. However, some banks do combine the conveniences of checking with the return of a money market account. Also, as "asset management" accounts at brokerages become more feature-rich -- offering unlimited check writing, ATM access, and money market rates -- more folks are shunning the banks in favor of brokers.

Pros

Your money is only a check or an ATM machine away.

• A bank branch is usually not far, often in your grocery store, if you're so old-fashioned as to want to deal with a human being.

• As with all bank deposits, checking accounts are insured by the Federal Deposit Insurance Corp.

Cons

• Depending on the bank, you may not earn much, if anything, on the money in your account.

• Many checking accounts require a minimum balance or charge fees, or both, which are a pox upon your pecuniary patience.

Savings accounts

In the old days, savings accounts -- or passbook accounts, as they're sometimes known -- were the most popular rest area for short-term savings. Fortunately, folks are getting smarter and parking their pelf in higher-yielding investments. The pittance you earn in most savings accounts isn't enough to even keep up with inflation.

Pros

• The money in a savings account is insured by the FDIC.

• Account minimums are often low.

Cons

• The return on savings accounts is so low, some mattresses pay more in interest.

High-yield bank accounts

Nowadays, you can find high-yield savings and checking accounts. They're an ideal place to park money for your monthly bills. They offer flexibility (you can add or withdraw funds at any time) and liquidity (your dough isn't locked in for a specific time period). Some even boast interest rates on par with more restrictive investments like CDs. The best rates by far are offered by online-only banks that keep costs low by cutting back on frills.

Pros

• Better rates than many standard bank accounts.

• Same FDIC insurance applies to high-yield accounts.

Cons

• Bare-bones banks with no ATM/debit access or check-writing privileges can be a big hassle if you need your cash fast.

• Customers must coordinate their cash flow by transferring money back and forth from the online bank to a linked checking/savings or brokerage account. That means delays -- two to five days -- before everything's reconciled.

• Watch out for limited-time teaser rates by researching the product's six-month interest rate history.

Money market deposit accounts

Money market deposit accounts are offered by banks, usually require a minimum balance, and permit a limited number of transactions per month (six transfers, three of which can be checks written on the account).

Pros

• Money market deposit accounts are very liquid. Most allow for easy access through checks, transfers, and even ATMs.

• Because they are offered by banks, money market accounts are insured by the FDIC.

Cons

• Unfortunately, you may pay for the liquidity by receiving less in return than from certificates of deposit.

• If your account falls below the minimum required balance, or you exceed the limited number of transactions, you might pay a penalty.

Money market funds

Money market funds are offered by brokerages and mutual fund families. These funds invest in highly liquid, safe securities such as certificates of deposit, government securities, and commercial paper (i.e., short-term obligations issued by corporations).

Pros

• With a money market fund, you can have the money in your hot little hands very quickly. Often, you can write checks or use an ATM card.

• The returns on money market funds are typically higher than the return on money market accounts.

• Issuers go to great lengths to keep the NAV (the price of each share of the fund) at $1, so your principal is relatively safe.

Cons

• Money market funds are not FDIC insured.

• There is no guarantee that the NAV will remain at $1.

Certificates of deposit (CDs)

CDs are debt instruments with a specific maturity, which can be anywhere from three months to 60 months (i.e., five years). Most CDs are issued by banks, but they can be bought through brokerages.

Pros

• CDs are very safe because most are offered by banks, so they are FDIC insured.

• Depending on how long it is to maturity, CDs may pay more than money markets.

Cons

• Your money is off-limits until the CD matures. If you must, you can redeem the CD early, but you'll pay a penalty.

U.S. government bills or notes

"Treasuries" are backed by the full faith and credit of the U.S. government. Treasury bills mature in less than a year; Treasury notes mature between two and 10 years.

Pros

• Treasuries are considered the safest investments in the world.

• They can be bought directly, commission-free, at TreasuryDirect.

• They are exempt from state and local taxes.

Cons

• If you shop around, you might get a better return from money markets, CDs, and corporate bonds.

• If you need your money before the security matures, you may not get back all of your original investment.

I Bonds

No, they have nothing to do with the Internet. I Bonds are inflation-indexed savings bonds issued by the U.S. government. The amount an I Bond pays is adjusted semiannually to keep up with inflation and protect the purchasing power of your money.

Pros

• I Bonds are backed by the full faith and credit of the U.S. government.

• The "I" in I Bond protects your investment against inflation risk.

• They are sold in manageable denominations, ranging from $50 to $10,000.

• They can be bought from most financial institutions, including TreasuryDirect.

• The earnings are exempt from state and local taxes, and can be tax-free if used for post-secondary education expenses.

• Taxes on earnings can be deferred for up to 30 years.

Cons

• You must hold an I Bond for at least 12 months, and you will pay a penalty of three months' earnings if you redeem the bond before owning it for five years.

Municipal bonds

Municipal bonds (or "munis," as the big talkers refer to them) are issued by state and local governments in order to build schools, highways, and other projects for the public good. Municipal bonds are most attractive to high-income investors looking for tax-friendly income.

Pros

• Munis are just a step down from U.S. securities in terms of safety.

• Income is exempt from federal taxes, and might be exempt from state and local taxes if you live in the municipality that issued the bond (check on the tax implications beforehand).

Cons

• Interest from munis is relatively low. Unless you're in a high tax bracket, you'll usually get a better return from other investments.

• You may have to pay a commission to buy municipal bonds.

• If you need your money before the bond matures, you may not get back all of your original investment.

Corporate bonds

Corporate bonds represent debt issued by companies, from the blue chips to the "cow chips," if you know what we mean. The more creditworthy the company, the less it'll pay in interest. Moody's and Standard & Poor's rate companies as to their ability to meet their debt obligations. Only short-term bonds are appropriate for short-term savings.

Pros

• Corporate bonds usually pay more than government securities, money markets, and CDs.

Cons

• The company that issued the bond could suspend interest payments, or even go belly up.

• You may have to pay a commission to buy bonds.

• If you need your money before the bond matures, you may not get back all of your original investment.

Bond funds

Bond funds are mutual funds that pool the money of investors to buy bonds of all stripes.

Pros

• They are an efficient way to buy bonds in small increments and get the diversification that minimizes the risk that you picked a bond from a deadbeat company.

Cons

• The NAV (i.e., the share price) of a bond mutual fund fluctuates, because of interest rate movements and the bonds bought and sold inside the fund. Therefore, you're not sure exactly how much of your original investment will be around when it's time to take your dough. Likewise, the yield on a mutual fund fluctuates.

• You will pay an ongoing expense to own the fund, called the "expense ratio," and you may have to pay a commission, called a "load."

This story is adapted from a Robert Brokamp article. It has been updated.

Mutual Funds Fall

NEW YORK (CNNMoney.com) -- Investors continued to drain money out of mutual funds last week, adding to an even greater decline from the week before.

According to a report from TrimTabs Investment Research released Thursday, about $2.8 billion was withdrawn from equity-based mutual funds in the week ended Dec. 10. The week before, $12.1 billion flowed out of these funds.

"The report shows how much risk aversion there is," said Vincent Deluard, a TrimTrabs analyst. "Either money is going under mattress or people are losing their jobs and they need the money."

Mutual funds that invest primarily in U.S. stocks posted an outflow of $1.7 billion, after losing $8.3 billion the week before. Funds that invest in overseas stocks shed $1.1 billion compared with $3.8 billion that came out during the previous week.

Surprisingly, bond funds fell for the second week in a row. Though corporate bonds have not performed well this year, they have certainly outperformed stock-based funds, with the S&P 500 index falling 38% over the course of 2008.

But bond-based mutual funds suffered even bigger declines than stock funds, as investors took out $10.6 billion from those funds, compared to an outflow of $6.8 billion in the previous week.

Experts say investors are almost exclusively interested in U.S. Treasury investments, shunning even conservative corporate bonds.

Exchange-traded funds, or ETFs, that invest in U.S. stocks posted an inflow of $8.4 billion, compared with an inflow of $920 million the previous week. ETFs of non-U.S. stocks grew $2.9 billion, compared with inflow of $643 million in the previous week.

Alero Equities Has the Answers

Golden years fade into the horizon

The report states that for many Americans retirement has been pushed back. 43% of overall respondents said they believe they now face more years in the work force compared to a year ago. 36% of affluent Americans and 31% of those 50 or older expect a longer career.

Half of affluent respondents said they planned to "pursue a more cost-effective lifestyle," Bank of America said.

An unclear future

The bleak situation in many Americans' finances is compounded by future plans that are hazy, the survey found. Most - 59% of the general public and 52% of affluent individuals - don't know or don't have a good idea of what they'll need to save to maintain their current standard of living, the report said.

Four in 10 Americans do not plan to change the way they save or invest for retirement in 2009, though 16% of the general population reported that they may not save anything for retirement in the coming year, the report said.

Almost half (44%) of the general population and close to two-thirds (61%) of affluent Americans are putting their investment dollars into savings accounts, where cash can be accessed easily, the survey said.

NEW YORK (CNNMoney.com) -- As the economic crisis continues to hammer Americans, many are turning to desperate measures by dipping into their retirement funds to make ends meet, according to a survey released Thursday.

The 2008 Bank of America (BAC, Fortune 500) Retirement Savings Survey revealed that current financial conditions forced 18% of respondents to withdraw from their retirement accounts prematurely.

Accessing their retirement funds "should be at the bottom of the list," said Craig Averill, personal retirement solutions executive at Bank of America."They need to be cognizant of what this decision means."

The top three reasons for the early withdrawals include: credit card debt (25%); mortgage payments (22%); and recent job loss (22%), according to Bank of America.

Findings revealed 62% of the general public and 44% of affluent respondents are either behind schedule or have not started retirement planning - compared to 53% and 36%, respectively, in a March survey.

The March survey was the first conducted by the bank. The current survey was the first time it asked respondents about premature withdrawals due to the poor economic conditions.

Still despite the dramatic upheaval in the U.S. economy, Bank of America said, 68% said they haven't changed the way they save, invest, or manage retirement assets in the last three months.

"In today's economy, people are bombarded with messages that create a great deal of anxiety," Averill said. "It puts them in a position of indecision. They're concerned about making the wrong choice, so they do nothing."

The "most significant roadblock" most people face is being unable to save earlier for retirement, the report said, with 52% of the general population and 48% of the affluent responding as such.

"What the survey says on the whole is, people need to go back to basics," Averill said. "Remember the fundamentals. It can be painful sometimes to do a cash flow statement, but it's necessary. Focus not just on today, but the reasons you put a retirement plan together. "

Welcome to Alero Equities

Hi, friends, business associates and past clients. Welcome to the first edition of my blog.

In this edition, I will cover topics about

• the steps you can begin taking now to achieve financial prosperity and
• tips on how to better prepare yourself for retirement and
• ways to make money save money and create wealth.
  

My background, qualifications, and achievements include:

• I presently hold and a Series 65 securities license, authorizing me to advise on the purchase of stocks and bonds
• I manage a Hedge Fund
• I am registered with the State of California as an Insurance Agent
• I am registered with the State of California as Real Estate License, and most recently
• I became the 1st and Only African American Hedge Fund Manger in the State of California Managing "Easy Equity Partners L.P, "
  

I look forward to bringing you life changing information and stories of success of everyday ordinary people on a bi-weekly basis.

We must be prepared to fight and win our financial freedom! With a recession looming, unemployment at all-time highs and Social Security possibly being phased out, we must fight for our own financial futures.

More people are forced to put retirement on hold. In 10 or 15 years from now people who approach their early 60's are simply not going to have enough money to retire, Alero Equities wants to help change that.