Money Guy Show

There is a storm of concern that has been building for quite some time, and it is finally getting the attention that it deserves…. 401K FEES:   CNNMoney.com “Lawmakers to take close look at hidden 401(k) fees” US Deprtment of Labor “A Look at 401(k) Plan Fees” MarketWatch “More fee disclosure could save 401(k) owners money, Congress told”   For more information, visit the show notes at http://www.moneyguy.com/2007/03/are-401k-fees-robbing-you-of-your-retirement Learn more about your ad choices. Visit megaphone.fm/adchoices

Discover the ins and outs of term life insurance, including how its affordability has surged in recent years. Learn why having a will and life insurance is crucial, especially for families. The hosts navigate online rate shopping and the benefits of consulting an insurance agent for tailored advice. They also share humorous anecdotes about their Beverly Hills dining experiences, contrasting luxury with ludicrous prices. Plus, explore the cultural phenomenon of American Idol and its surprising impact on viewership!

When I use others’ research I always try to give proper credit to the source. Much of the information and research for today’s podcast comes from Consumer Reports Money Adviser (January 2007 Issue). If you listen to AM radio, watch any of the cable news networks and/or your evening news, or read a newspaper, you have probably heard the following terms: Federal Reserve, Federal Reserve Chairman Ben Bernanke, Inverted Yield Curve, GDP, and Inflation Rate. How many of us really know what these figures and terms truly represent? For more information, visit the show notes at http://www.moneyguy.com/2007/02/too-scared-to-ask-economic-indicators-explained Learn more about your ad choices. Visit megaphone.fm/adchoices

The backbone of good investing is Asset Allocation, and today I am going to load you up with great information. Terms needed to understand asset allocation: Domestic Stocks = US Companies Market Capitilization of US Stocks (According to Morningstar): Large Cap = US Companies with a Market Cap greater than $11 Billion (these are the companies that are household names like Wal-mart, GE, Home Depot, Coca-Cola, Pfizer, and so forth) Mid Cap = US Companies with a Market Cap between $2-$11 Billion (these are companies that you might have heard of like HR Block, but are not the size of the previous listed group. Small Cap = US Companies with a Market Cap below $2 Billion. Probably not going to recognize the small company unless you specifically use their product or they are in your town.   For more financial terms, visit the show notes at http://www.moneyguy.com/2007/01/the-abcs-of-asset-allocation Learn more about your ad choices. Visit megaphone.fm/adchoices

Before we can look forward I think that it is smart to review what happened in 2006: Domestic Stock Markets: * The 2006 market was interesting in the fact that the first half was pretty flat as everyone tried to figure out what the Federal Reserve was going to do with interest rates. * The second half was El Fuego (“ON FIRE” for my Spanish-challenged listeners). The Fed decided to take a break with interest rates, oil prices dropped, everybody and their brother decided it was a good time to merge with other businesses, corporate profits were better than anticipated, unemployment was lower than expected, and interest rates came down. * All of this was the perfect mix of optimism and lower inflationairy news that allowed patient long-term investors to be rewarded. * Actual numbers for 2006 (with dividends reinvested): S&P 500 Gained 16% Dow Jones Industrial Average returned 19% (at an all time high) NASDAQ was up 10% (still more than 50% below 2000 levels)   For more information, visit the show notes at http://www.moneyguy.com/2007/01/what-to-learn-from-2006-and-use-in-2007 Learn more about your ad choices. Visit megaphone.fm/adchoices

A recap on where to get good advice and what to watch out for. Unfortunately, my industry still has too many short sighted individuals. What I mean by this statement is that there are a lot of advisors, brokers, agents, and reps that are looking for the big score, and could care less about the long term financial health of their clients. My personal belief is that if you do good things for others it comes right back to you. Fortunately for me and my company most have not realized that you can make more long-term money by being good to your clients. For more, including The Five Signs of Bad Financial Advice by Suze Orman, visit the show notes at http://www.moneyguy.com/2006/12/planning-well-and-avoiding-the-sharks Learn more about your ad choices. Visit megaphone.fm/adchoices

The government recognizes that most individuals have been asleep at the wheel when it comes to saving for their retirement, and they are also unaware that Social Security is only a few decades from a funding disaster (don’t worry I am not going to go there on today’s show). As a result of this SILENT BUT DEADLY BUILDING DISASTER the government has made several changes that provide tremendous opportunities for you to save for your future retirement and financial independence. What retirement option should you use and in which order should they be funded? For more information, visit the show notes at http://www.moneyguy.com/2006/11/organizing-your-retirement-options Learn more about your ad choices. Visit megaphone.fm/adchoices

I received an email from a subscriber (thanks Helen) suggesting that I watch the PBS Frontline special titled “Can You Afford to Retire”. I was so impressed with the program that I have decided to focus today’s podcast entirely on the special.   The focus of the program is on the changing retirement landscape. 1974 Retirement Funding: 11% Employee 89% Employer 2006 Retirement Funding: 51% Employee 49% Employer “Defined Pensions”: The Endangered Species ...and more.   For more information, visit the show notes at http://www.moneyguy.com/2006/11/retirement-in-crisis/ Learn more about your ad choices. Visit megaphone.fm/adchoices

Ok everyone please quit sending me emails on how to become a Financial Advisor. I have been bullied enough that I will spill the beans. According to CNNMoney.com I have the 3rd best job in America.   Before you run out and decide to change careers let me provide you with my thoughts: * You have to be good at taking test and going to school * To be good you have to love numbers (and I mean truly love numbers) * This is also one of those professions that requires a unique personality mix – you have to be very analytical (to the point that you are truly a numbers nerd), but somehow enjoy talking with and building relationships with others. Trust me there are not many of us out there; most are good at one but not both and that can lead to limited success. * This is also one of those industries where you are not paid what you are truly worth for a number of years (3 years of experience required for CFP certification & 2 years of experience required for CPA).   For more information, visit the show notes at http://www.Money-Guy.com/financial-advisor-3rd-best-job-in-america Learn more about your ad choices. Visit megaphone.fm/adchoices

In this weeks Financial Chaos Topic we discuss the following: A Creative Way to Give and Avoid Taxes at the Same Time If you are Charitable and Sick that the Government makes you take taxable RMD from your Retirement Accounts Wesley Snipes joins the ranks of Willie Nelson and other not so tax smart celebrities. Don't mess with the only organization that can show up and just take your stuff! For more, go to http://www.moneyguy.com/2006/10/the-tax-smart-way-to-better-the-world/ Learn more about your ad choices. Visit megaphone.fm/adchoices