I have talked some about becoming your own banker. This is called The Infinite Banking Concept. This concept requires a shift in mindset. This is because we have all been conditioned to borrowing money. But think about the advantages, 1) no debt, 2) money for retirement, 3) an automatic (and growing) estate, 4) a real retirement without the higher taxes we all expect and 5) and a person saves a LOT of money.

So the concept goes like this: a person has paid off personal debt using this concept. They now purchase their automobiles/trucks using this concept, and yet the money continues to grow. What now?

Now they are in position to take it to the next level. Many things they could do, but one idea is to lease equipment to their own corporation. The equipment is in their personal name, and they reap a profit from their corporation from the interest built into the lease.

There a lots of scenarios like this. But the first step is learning how to get started. That’s what I am here for.

Call me and let me show you how this concept can work for you.

Michael P Myers
209-390-1163

It’s not uncommon for people to have the view that insurance is like the lottery … a big gamble.

For a person who has never filed a claim, I guess I understand them having this view. However, I want to examine this conclusion for just a moment.

According to information posted on the Internet:

The odds of winning the California Super Lotto Jackpot are 1 in 18 million! Other lotteries may have slightly better “odds”, such as 1 in 15 million! (Feel better now?)  Here is another way of looking at it:  If one person purchases 50 Lotto tickets each week, they will win the jackpot about once every 5,000 years.

How do those odds compare to the odds of an insurance claim being filed?  For instance, what about the chances of ever needing disability income?

If you are currently 25 years of age, there is a 1 in 44 chance you will be disabled and unable to work at some point in your life.  This statistic increases with age, so that, when you are 55 years of age, the chances have increased to 1 in 27!

Similarly, what about the chances of  needing some type of in-home or facility care (non-hospital) when a person gets older?  To answer this, I will quote from the respected, Wall Street Journal, which stated

… a couple turning 65 has a 75% chance that one of them will need long term care.

This high risk can also affect the entire family where the children are at risk of a negative inheritance, also according to the Wall Street Journal.

Along these same lines, The National Academy of Elder Law Attorneys did a study and compared the risk of needing long term care with the risk of other financially devastating risks, such as a major auto accident, or a fire in a person’s home. According to that study, the rates of risk were:

• Automobile accident 1 out of 240 [0.4%]
• Fire damaging your home 1 out of 1,200 [0.08%]
• Needing long term care assistance 1 out of 2 [50%]

Of course the chance of dying is 1 in 1 [100%].

The biggest difference between the two “products” is – the lottery appeals to peoples desires, while properly selected insurance provides “Real Solutions for Real Risks”.  Sometimes the real reason we do not make decisions about insurance coverage, is that we “know” we can’t afford all the types of insurance we could buy, so we just kind of dismiss them all.

I am here to help you.

I will never pressure you to buy this or buy that. I will provide you objective and well-researched information to tailor the product to your need and circumstances.  This is true whether you’ve bought insurance in the past, or if you’ve put off buying insurance. I will help youget the best value for your hard earned dollars.

What is the cost of the insurance? Obviously this depends on you and your needs, but one thing I will assure you: it’s a lot less than buying lottery tickets!

Just ask … I can help! Call me at 209-390-1163 and I will show you the best way for you.

Have me prepare them for you.

I was watching a show on TV the other night and saw an ad from a large tax preparation business – you know who I mean …

They were explaining how inexpensive it is to have them do your taxes if you are a person with only one employer and a simple return. It was a nice advertisement. But did you know that I charge less?

I also saw an ad for purchasing tax software and touting how inexpensive it is. It too was a nice advertisement. But did you know that I charge less?

I have prepared taxes for over 25 years – and have done so professionally now for three years. The simple returns that the large company was advertising for – well, I will save you money. And if you are self-employed – this is an area that I specialize in. I will help you maximize your deductions and I also will point out how you might do things differently through the year to help you when its time to file your taxes.

I get my education from both the tax preparation industry as well as my decades of experience in the insurance industry.  With this background, I can often find things that others might miss.

Why not give me a call at 209-390-1163 and let me show you how I can help you. You may very well save money. You will deal only with me, not a host of people that may or may not be there when you need them.

You Need a Budget

Keep reading. I promise you this makes sense and there are health insurance options for you out there.

We all need to budget.

Why?

It makes sense for YOU to be the one who decides how to spend your hard-earned dollars.

Quite likely, most have been in that situation where we feel like we’re just putting out “fires.” As soon as we have one doused we turn around and there’s something else that needs immediate attention because it’s about to burn the place down so now all of your resources are aimed at putting that “fire” out.

That’s letting the figurative financial “fires” determine how you spend your money. It’s exhausting. And consumes too much energy and resources – and all too often the important stuff gets postponed. Like health care.

Now, it’s a given – health insurance is not “cheap”. Health care is expensive too. The government continues to come up with new and innovative Band-Aids for the whole health care system.   Time will tell what will come of all of that.

Meanwhile there’s really too much at stake to postpone taking charge of YOUR health care.

One of the most affordable options can be a high-deductible, HSA-qualified health insurance plan.

What??

Why bother with an insurance plan with a really high deductible? You’ll be buying insurance AND STILL having to pay for the doctor, right?

This is what I want you to do. I want you to reframe that thought. Do you have a home? Do you make payments on your home? Do you pay the taxes on your home?

Why do you do that? Likely because you like your home and you want to keep it. You are protecting your investment – because if you don’t pay those things, you could lose it. Think of a high-deductible insurance plan as yet another way to protect your investment. If you get sick and have a major expense (and it does not take much to qualify as “major”), health insurance will keep that particular “fire” from consuming your most valued asset.

So…how do you AFFORD health insurance on top of everything else in this miserable economy?

Careful planning and choosing the right insurance policy can make health insurance affordable. You may be surprised to find that there are health insurance options that will fit your budget and and give you the peace of mind you need as one more way to protect your assets.

One option – an H.S.A.

What is an H.S.A.?

It stands for Health Savings Account. It is provided for in our tax code to allow a person to have a high deductible health insurance plan, and also contribute tax-deductible money to a Health Savings Account (at a bank). Money going into the account is tax deductible. Any money coming out of that account – when spent on health care (i.e. paying the doc from this account) is not taxable.

Another benefit to funding your H.S.A. – if you are in the 28% tax bracket, and you do fund the account and you do pay medical expenses from this account, it is as if you are paying the doctor, dentist, optometrist, chiropractor – whomever your helath care professional may be – with 72 cent dollars. I’ll bet you like the sound of that! Your health care is CHEAPER!!!!

But what if….

What if I cant do it? What if I can’t get my H.S.A. funded with enough $ in it to cover my deductible? Now what good would it be to have purchased this high-deductible insurance policy?

OK…let’s just come up with a hypothetical situation here. I’m not suggesting or recommending you do this – but let’s talk about this particular “what if?”

You’re self-employed.  You end up injured on your job, or that funny pain in your gut turns out to be a bad gallbladder/appendix – whatever. You land in the hospital. You have insurance, so at least they TOOK YOU as a patient right? But oh no…the deductible is terribly high.  You know you don’t qualify for any of the charity programs because you own your house and your business etc.  This sure does look like the straw that will break the camel’s back. Oh worry. Why didn’t I at least save for that blasted deductible?  Or… Why didn’t I just bite the bullet and pay for a more expensive policy? How fast can I get out of this place?! Worry. Worry. Worry.

You leave the health care facility with a payment plan – which you now add to your budget. Each month you’ve agreed to pay the health care facility $100 – or whatever. Why don’t you just put that $100 in your H.S.A. and pay them out of THAT account? $100 in (tax-deduction for you) – $100 out – paying back the debt to the hospital – no penalties for withdrawal from H.S.A. because it’s for a medical expense you incurred after establishing your H.S.A. – if you’re in that 28% tax bracket – you’re paying them back with a .72 dollar.  It’s not the best way to plan for the future – but it’s still better than NOTHING.

Did you know?

When you turn age 65 – ANY money that has not been used and is still in your H.S.A. can now be converted to an I.R.A. and used for retirement purposes.  Again:  No penalties or taxes?

I can help you with this.

Call me or e-mail me and let me explain what’s available. You might just be surprised that it actually will fit into the budget.

Check it out.

• Budget Software – I use it but I’m not affiliated with YNAB. They make budgeting EASY and maybe a little fun.
• Contact Michael about Insurance and HSA options.

It is often the case that we feel, should something happen to us where we need long-term care, we will “just stay at home”.

People generally feel that way because of one of two things:

1. They don’t like the idea of convalescent hospitals with all of the negative connotations the word calls to mind, or
2. They think it’s less expensive to stay at home.

It is true that some convalescent hospitals are less than desirable, it is also true that some do a very good job of providing a home while attending to special ongoing needs of their patients. They do a good job of giving people a reasonably good quality life. The cost is reasonable when compared to being in a hospital, but still would “break” all but the richest of people over time.

According to a study just released, the average cost is $203 per day, or $74,208 per year. This cost is going up at a somewhat alarming rate of about 4% per year.  However, the cost of staying at home with 24-hour nursing care is about double this. State licensed home health aides average about $18.50 per hour. So this cost is over $400 per day.

This may surprise you: the study also concluded, from raw claims data, that

about 70% of all claims of one well-known insurer were paid out for home-health care.

Regardless of which option you choose, how does a person handle this type of expense?

The key is planning.

In my (nearly) 25 years of helping folks in this area, I’ve seen a lot of changes. I am here to help my clients determine, in a relatively simple process, which avenue open to them – longterm care insurance or some other source of funding – will best serve their needs.

Give me a call or send me an email and I’ll show you how to do this.

People work their whole lives to enjoy retirement. But with the recent problems we’ve had, some wonder “just how do I retire”?

In times past, people did things conservatively. In recent years, this strategy was often been mocked  and people went for the bigger and better. It seems though that conservative has its benefits.

I advocate some “bigger and better” while younger, but conservative when older. Annuities will often serve this role very well. But there is more to it than just buying an annuity.

There is also choosing the right options at retirement – and more importantly, planning for those choices ahead of time. This is what the retirement analyzer can do. I offer this as a free service to help a person plan. There is nothing like knowing what you are going to do – and then being able to do it.

Just ask, and I will show you how to best use this – as it applies to your situation.

With the aging of the “Baby Boomer” generation, some “facts” we came to take for granted need to be re-examined.

Many of us, myself included, were part of the generation of insurance agents who encouraged the purchase of (less expensive) term life insurance and “invest the difference”. People were spending a lot of money and only getting a small amount of insurance, when what they needed was a lot of insurance and a smaller premium. “Invest the difference” meant that – after getting adequate term life insurance – we would recommend that the “savings” in insurance premium be put in an IRA or some other type of annuity. This recommendation was made because life insurance is primarily to provide for dependents (replacing your income) and to handle your final expenses. Considering this primary reason for the insurance, term life insurance was usually the best option for most people.

Things have changed.

As people grow older, their needs change. They may or may not need as much  life insurance (i.e. the need to replace income lessens) and reasons for having life insurance also change.

Two facts to consider today:

1. Permanent (or what we call “whole life”) insurance has gotten less expensive – in some cases, considerably less expensive.
2. Term insurance is also less expensive and there are versions of it that return all of the premiums paid in at the end of the term (i.e. 10 years, 15 years, 20 years, etc).

For most people there is a continuing need for at least some type of life insurance, if for no other reason, to be able to cover final expenses.

Today, there are many fine choices in life insurance.

The only thing we have to do, is spend a few minutes considering what we consider most important and then implementing our plan. I can help you with the questions you need to ask yourself.  (Sometimes we already have all the answers – we just don’t know what the QUESTIONS are!)

Do yourself a favor, spend a few minutes and let me help you with this.

Call me or email me and let me show you how planning can be a lot less-expensive than just allowing things to happen.

There are many excellent tax preparation software programs available to those wishing to prepare their own taxes. However, some have found  my tax preparation services very useful, especially if they have questions regarding any part of the process.

For those having a simple return with just a “normal” job, the cost of my service is not so much different than buying the software and doing it yourself (and you have the advantage of having my advice!).

I work a lot with self-employed individuals, and people in small business who enjoy the convenience and affordability of my tax preparation services.

• I offer my services throughout the year.
• I will work on a consultant basis (tax filing included) and have saved clients many times the cost of using my services.
• I can also simply save you the hassle of doing your taxes.

For a free – no cost – analysis of what I can do for you, email me or
phone me at 209-390-1163.

Michael Myers

There are a lot of good, very good, programs available to prepare one’s taxes. And there is a lot of good advice, free, on the internet. So why use a tax preparer?

Some of the advice, while on the whole, very good, could lead you into making a mistake that could be costly.

One example is it is commonly thought that if you do work for someone and you invoice them, and they don’t pay you, you can “write off” that invoice. This could be true … but only sometimes is that the case. Why?

Consider this … tax write offs are, in general, expenses you incur to promote your business or to conduct your business. If you, as most of us do, declare you income based on receipts and expenses based on what you spend, you can hardly “write off” something you have not received or spent. So, most of the time, the idea that you can “write off” an invoice not paid is not really true (although expenses you incurred doing the work you were never paid for may be a deduction).

Now if you declare income based on invoices (accrual method), then you could write this off, since it was viewed as income when you billed it, and yet it was never received and you’ve stopped trying to receive it.

This is one example of why having a tax preparer can benefit you.