Ever heard someone say, “Oh yeah! He’s rich! He’s livin’ the life of Riley!”

Dictionary.com defines “life of Riley” as “a common expression for a carefree, comfortable and thoroughly enjoyable way of living” as in this sentence: “Since winning the lottery, he’s led the life of Riley.”

For most people who struggle financially, real wealth means being able to sleep in, live where they want, travel when they want, kick back or celebrate whenever they want, and not sweat about financial decisions. Being rich, indeed, means living the life of Riley -- carefree, comfortable and thoroughly enjoyable.

But if being rich was that simple, people who come into lots of money in a short period of time would remain wealthy throughout their lives. And most don’t.

Take professional athletes, for example. Sports Illustrated says more than three out of every four NFL athletes face bankruptcy or serious financial stress within just TWO YEARS of departing the gridiron. The same grim reality is true for 60% of NBA players as well. The internet, as well, is full of fascinating tales of lottery winners who “blew through” prizes of $1 million, $5 million, $10 million and
ended up a few years later back at work, living from paycheck to paycheck, and very often buried under debt...

Plenty.
And if there’s any question about the clarity of that answer, try this on for size: Much, much more than you ever want to pay.

Consider this:
For most of us, the quality of life we experience in our later lives depends upon how well we manage “the margin” now.

What is “the margin”?

The margin is the amount of resources that we can pay forward during our most financially productive years. It’s about setting aside that “margin” of 4% or 6% or 10% or more during seasons when you’re able to earn and accumulate money. Then you manage that “margin” so that, independent of your sweat and work schedule, those dollars are able to multiply and grow into meaningful wealth.
In other words, accomplishing your dreams later in life comes down to making sure you have “left over dollars” NOW, that you invest those “left over dollars” wisely, and that you have time for them to mature and multiply into real wealth.

The real cost of poor credit is this: it robs you of that critical “margin.” It literally eats your quality of life.

How so?

Consider again:
With poor credit, you will likely pay more -- sometimes much more -- for your housing, car loans, car insurance, education loans, cell phone services and elective medical procedures. Furthermore, while prospective employers are barred by law from asking you about your age or sexual orientation or health, they can and will check your credit standing. And, as if all that’s not enough, the stress of credit
issues is often listed among top contributing factors in divorce proceedings. So let’s see...

Okay, tell the truth.
How much storage space do you have clear and free in your home?
Very little, right?

It’s simply part of the human condition that the junk in our homes expands and multiplies to fill all available space. Office drawers over-flow with unused keys, broken pencils and dried-out markers. Closets bulge with clothes you haven’t worn since the Beatles landed in America. Garages are so obstructed and cluttered that the main thing they were built for -- your car -- has found a permanent home outside on the driveway or street.

The same principle applies to our finances.

Very, very rarely is our personal income enough -- not because the dollars are insufficient to cover the need but because the clutter in our lives has consumed all of our financial breathing room and left us with no dollars to support meaningful investment!

“Oh,” you think, “so this article is about doing without, about turning off lights and eating out less, scrimping and sacrificing in order to build a nest-egg!”

No. This article focuses on the big stuff, the major common-sense issues, the stupid DUH! sinkholes that we know to avoid and yet ALL of us occasionally stumble into. These are things you do and slap yourself, moaning aloud, “What a dope! Why do I do this?”

So here they are -- the big habits that rob us of our quality of life both now and in the future:

#1 - Don’t loan money to relatives or friends. In 2000, the federal government was actively garnishing the Social Security payments to six -- that’s right, “six” -- American seniors because of delinquent student loans. As of April, 2013, that number had surged from six to 115,000! WHOA! According to Time magazine, Americans age 60+ in 2012 owed $36 BILLION in student loans.
Do not loan money to relatives and friends. Do not co-sign for the debts of others. Do not take out student loans on behalf of your grandchildren. It’s not good for you and, in the long run, it’s not a wise decision for your friends or relatives either.

#2 - Understand your budget! If you read that and ask yourself, “What budget?” then ask the nearest person to kick you really hard...

According to a survey released last month by America Saves and the American Savings Education Council(ASEC), just 35% of Americans feel they are making good or excellent progress in saving money. Nearly two-thirds (63%) say they're making fair or no progress.

However, nearly 7 out of 10 (68%) say they are spending less than they are earning and saving the difference, and 64% report having emergency savings to cover things like unexpected car repairs. More than three-quarters of respondents say they are paying off their consumer debt or living debt-free. Although these numbers are higher than or the same as they were in 2013, they are lower than they were in 2010.

Importantly, the percentage of Americans building their net worth through home equity has declined substantially over the past few years, from 68% in 2010 to 54% this year. And those who expect to live mortgage-free in retirement fell from 78% in 2010 to 68% today.

"Only about one-third of Americans are living within their means and think they are prepared for the long-term financial future," said Stephen Brobeck, executive director of the Consumer Federation of America and a founder of America Saves.

Sharp differences between income levels
Perhaps not surprisingly, those reporting the greatest challenges were in the lowest annual income levels measured. While no stark differences were noted between the $50,000 and $75,000 income level and the $75,000 to $100,000 range, the percentages dropped dramatically in the $25,000 to $50,000 income range.

For example, although more than 8 out of 10 people in the higher income brackets said they had a sufficient emergency fund set aside, just 63% of those in the lower income level said they had enough to cover unexpected emergencies.

Spending plans and saving goals may make a difference
The survey authors note that one factor that may contribute to the decline is the falling percentage of Americans who say they have savings and spending plans. The percentage who report having a "savings plan with specific goals" fell from 55% in 2010 to 51% in 2014. Those with a spending plan that includes an amount set aside for saving fell from 46% in 2010 to 40% in 2014.

"As numerous studies have shown, those with a plan save much more effectively than those without one," said Dallas Salisbury, chief executive officer of the Employee Benefit Research Institute (EBRI) and chairman of ASEC.

"Individuals continue to become realistic about the need to save and plan themselves, rather than assumeit will be done for them," he continued. Each year in its annual Retirement Confidence Survey, EBRI finds that individuals who set financial goals tend to be more confident about their financial future than those who do not.

About the survey
The 7th annual national survey assessing household saving was released as part of America Saves Week, which took place February 24 to March 1, 2014. America Saves Week is an annual event that brings corporate, government, and nonprofit organizations together to promote good savings behavior. America Saves is managed by the Consumer Federation of America, and the American Savings Education Council is managed by EBRI. Sponsored by these organizations, the survey represented the views of 1,108 adult Americans contacted by phone from January 30 to February 2, 2014.

Let’s say someone offered you $1,000,000 if you could find a winning design
to build the world’s most efficient car. They’re not looking for the world’s fastest,
most opulent or most exotic; they want power, comfort and maximum efficiency to reach their destination in style.

Two priorities immediately become clear. You need to find a plan that offers (1) exceptional power and (2) maximum efficiency.

Now take the car from that picture, and, in its place, think about your personal finances. To achieve your dreams(financial security, easy retirement, perhaps a get-away home in the mountains) you need (1) to find the cash to power meaningful wealth accumulation and (2) a strategy that eliminates waste and unnecessary losses. You need to re-examine your finances, infuse more cash to jack up your investments, and reduce...

READ THE FULL REPORT
Sincerely,

John Weyhgandt
Financial Advisor

Ever had someone really close to you lie to you? Ever had someone deceive you in such a way that it might take years to recover from the emotional or financial impact of their dishonesty?

What steps would you take to avoid ever falling into that trap again? Would you make a phone call to try to set things straight? Would you venture to trust a third party who might have the wisdom you need to recover your losses safely and efficiently?

In the financial world, very often the most damaging lies are indeed those which we tell ourselves. It’s not that we mean to be dishonest. We simply buy into, bank upon, and often spread untruths that end up crippling our financial prospects and draining life out of our long-term dreams of retirement. To learn about the seven most common myths, untruths and lies that many people believe -- falsehoods which rob them of their retirement wealth, please click on the graphic above or: 

CLICK HERE TO VIEW THE SEVEN LIES!

Sincerely,

John Weyhgandt
Financial Advisor

Congress failed to agree on a spending bill for the fiscal year starting October 1, 2013, resulting in the first government shutdown since 1995. According to the Congressional Research Service, this is the 18th time the federal government has shut down as a result of a failure to agree on an annual appropriations bill. Most shutdowns have lasted only a few hours or a few days. The most recent shutdown, in 1995, lasted three weeks.

WHAT HAPPENS WHEN THE FEDERAL GOVERNMENT SHUTS DOWN?

When the government shuts down, federal agencies must generally suspend operations and furlough their employees. However, there are significant exceptions for government functions that promote national security, or protect human life and property. As a result, a shutdown doesn't impact certain essential functions like the military, law enforcement, TSA, air traffic control, border patrol, emergency and disaster assistance, food safety, foreign embassies, prisons, and federal medical care (among others).
 
A shutdown also doesn't impact federal entitlement programs (like Social Security and Medicare) that aren't funded by discretionary annual appropriations. Funding for these programs is considered mandatory, because the legislation creating the benefit obligates the government to make payment. So benefits under these programs continue uninterrupted, and the employees who administer those benefits are generally exempt from furlough.
 
Finally, some agencies are funded by multiple year appropriations. Even though these agencies don't yet have any funds appropriated for the new fiscal year, they may still have funds remaining from prior appropriations, which they can use to continue operations until those funds run out.

SO WHAT DOES A GOVERNMENT SHUTDOWN MEAN TO YOU?

What you can do during the shutdown:

• Receive and send mail--the post office is an independent agency unaffected by the budget process
• Buy insurance through one of the new health insurance Exchanges
• Receive your Social Security and Medicare benefits, or apply for new benefits
• Get a passport or visa--but only until the State Department's available funding runs out (during the 1995 shutdown, 200,000 U.S. applications for passports went unprocessed)
• Conduct business with the United States Patent and Trademark Office--but only until the USPTO's available funding runs out
• Receive unemployment benefits and food stamps
• Get an FHA or VA mortgage
• Receive medical care at a veterans hospital
• Use the federal court system--but only for about 10 days

What you can't do during the shutdown:

• Stop paying taxes--the IRS will continue to process electronically submitted tax returns, but if you're being audited, you'll get a temporary reprieve
• Get taxpayer assistance from the IRS
• Get a small business loan
• Go to a national park, zoo, or museum--if you're already overnighting in a national park, you generally have two days to leave
• Get a paycheck, if you're a federal employee--unless you're the president, a member of Congress, or in the military; however, in the past workers were paid retroactively after a new appropriations bill was passed

If you need more information, most government agencies have posted their shutdown contingency plans on their websites.

AND THERE'S MORE TO COME...

The shutdown is separate and distinct from another looming crisis--the debt ceiling. According to Treasury Secretary Jacob Lew, it's anticipated that the United States will run out of funds as soon as October 17, and will default on its debts, unless Congress acts to raise the debt ceiling before then. More on that crisis to follow…

If you need to discuss any financial matters, please contact me via email at john@westernstatesfinancial.net or by phone at (951) 371-7608.

Sincerely,

John Weyhgandt
President and Owner

Part of this communication was prepared by Broadridge Investor Communication Solutions, Inc.

Nine out of ten Americans, age 50 to 70 with $100,000 or more in investable or retirement savings, have suffered at least one retirement calamity due to some significant economic or life event that slammed their retirement savings goals! In the end, the accumulated impact of these painful “derailers” cost the average survey respondent a whopping $117,000!

Can You Afford a $117,000 Hit to Your Retirement Plan?

Knowing from the experience of others that this kind of loss 
looms as a strong possibility in your future, will you take steps to side-step such a serious financial body-blow? Will you take steps to protect yourself?

The background information comes from a startling new survey conducted by Ameriprise Financial. The average survey respondent, drawn from a pool of 50-to-70-year-old adults with $100,000 or more in savings, LOST $117,000 to significant financial setbacks -- events which surveyors call “derailers!”

On average, surveyed families had suffered four significant setbacks, and nearly 40 percent had endured five or more “derailers” -- at even greater cost!

Stop and consider this: beyond the dollar figures, each setback carries its own burden of sweat and stress. More than four in ten surveyed say their savings lag behind earlier projections, and 55% describe the cost as “extreme” or “somewhat serious.” If 90% of Americans suffer this kind of loss, is this what YOU want?

CLICK HERE TO VIEW THE FULL REPORT!

Sincerely,

John Weyhgandt
Financial Advisor