Financial Fortress May 9th with Richard Jordan and Patrick Dougher
Financial Fortress 5-9-10
Welcome to financial Fortress radio. This is Pat Dougher. Richard Jordan in the house and Richard I know we want to talk about ways that the “smart money” invests and retain their wealth in ways that most people really realize. Richard welcome to the show.
Richard: Thank you Pat.
Pat: We want to go right into some of the things that a lot of folks are not really aware of is that there’s a big difference between a broker and a registered investment advisor out there. And one of the things that a lot of people do not realize is that a broker is a sales guy and a registered investment advisor was actually set up by the government initially, wasn’t it in 1940?
Richard: It was. The Registered Investment Advisor Act dates to 1940 and it was set up for the wealthy.
Pat: Very good. What are some of the other reasons why people would want to listen to Financial Fortress Radio?
Richard: Well, we’ll have some interesting material every week that is current. We operate without a conflict of interest, unlike the brokers and the insurance only sales people that will tell you that annuities solve all problems. Anybody that’s tired of hearing that stuff needs to listen in. Our mission statement includes the Golden Rule so we will treat you just like we want to be treated ourselves, as if we knew nothing about financial services. Also want to mention that we have offices in North and Northeast Dallas, Plano, Addison, Arlington and the Grapevine Southlake area. Our next seminar is at Southlake Timarron Country Club on May 27 and June 2 at 6:30 PM.
Pat: What are some of the things that you would expect to receive at your seminar?
Richard: Well, we’ll talk about how the wealthy and the smart investors use personal advisers to identify high return, low fee investment solutions, which is a little different from the usually get from the brokerage industry isn’t it?
Patrick: Well, usually it’s high fee, low return.
Richard: And conflicts of interest. I mean, look at the mess that Goldman is in, and I wish I could say that they are the only ones that way but they operate that way because they have an inherent conflict of interest in their business model.
Patrick: Very good. I know that you also use a variety of different investments and tools to help people build their wealth.
Richard: Absolutely. We offer true diversification in the nontraditional asset allocation, including hard as said like metals, precious metals and other ways that you can get high returns without stock market risk. After the meltdown this last week, I would think there’s a few people out there that might be interested.
Patrick: Can you believe that went out far in that amount of time.
Richard: And they are still trying to find out why Pat. In a nutshell, when you’ve got all the triggers set on the computers at all the big mutual funds and pension funds to sell, sell, sell when it drops quickly, you get that kind of a response from the market. Now luckily, a lot of the people that are in the market day trading jumped in to buy things when it looked obvious to them that there were some good buys out there. So, I think that they actually helped reverse the trend quickly.
Patrick: One of the things that I was surprised at, is back when I was doing financial planning and stuff, this was billions of years ago it feels like, and they were beginning to move more and more to the automated trading and we had a big selloff. It was like a 200 point day and people were freaking out and it was after the ‘87, but it was beyond that. They said well we’ve got stuff in place now but that could never happen again.
Richard: Right. They put the circuit breakers in place at the New York Stock Exchange. NASDAQ doesn’t have them, so if you were listening Friday to financial television, you heard the NASDAQ and the NYSE executives trading punches about who had a better system. But, really they need to set those circuit breakers on individual stocks because there were certain times when you could have bought Accenture for pennies, and you could have bought Proctor and Gamble at about a 40% discount.
Patrick: What?
Richard: Procter & Gamble. That’s right, at about a 40% discount in a 20 minute time frame.
Patrick: I guess that’s one of those things where opportunity came flying by you at the speed of light and if you weren’t paying attention, you missed it.
Richard: Well, and the scarier thing is if you were paying attention and bought it at 40 bucks and then turned around and sold it later at 50 just to capture a quick profit 30 minutes later, what the stock exchanges both decided to do after the fact, was disallow trades in that 20 minute period that were more than 60% off the mark that the stocks were set at a 2:40 PM Eastern. And as a result of that, a lot of people ended up buying cheap and selling high, only their trade where they bought cheap was discounted, so that means they sold a bunch of stock they didn’t own and they had a go back in the market and buy it at a higher price to close the day.
Patrick: That seems illegal. I mean you are saying that if I was paying attention and I sold something that I would get penalized because I was on the mark.
Richard: Absolutely. So it’s going to take a while to straighten the mess out. And of course they’re going through it trade by trade. There was all sorts of speculation about somebody hitting the B instead the M, trading 1 billion shares instead of 1 million. But so far they haven’t found any of that evidence. None of the large brokerage houses have found it looking individually. And the news as of just before the show started, I could find nothing that indicated that they really understood what happened.
Patrick: I don’t doubt. I mean, that’s one of those things that it shows you how razor thin the margin is, so to speak, when emotions are as cranked up as they are right now in the market.
Richard: Well, and it scared a lot of people because their returns, if they are in large caps are in indexes like the S&P 500, or they are in indexed annuities that are tied to the S&P 500, basically, what’s happened is they’re under water now from January 1 until this point of the year.
Patrick: Now, how does that affect the market overall, though, I mean does it give any major signals and change in direction?
Richard: It’s really hard to say that the traders are going to be set to continue to cause a decline at this point in time. I think the biggest trigger was the liquidity crisis in Europe. What was going on in Greece, and the fact that Greece was about to declare bankruptcy without some assistance. The International Monetary Fund agreed to give them $40 billion Friday night. The rest of Europe is committed to about another $100 billion, so they should be fine. They’re going to give them about, as I understand, a one or 2% loan rate for the next year, or two years to pay it off. I heard two different stories on that. And as a result of that interest rates are going to stay low. So if you thought bonds were going to go up in the near term, probably not.
Patrick: Isn’t it going to affect the euro in a pretty massive way? Weakening it overall?
Richard: It’s been weakened. It hit some record lows on Thursday for the last couple years. The euro may continue to decline but I think the fact that they’ve shored up Greece puts a finger in the Dyke for now. There’s other countries of course that we are worried about over there. There’s four or five, but I don’t want to name them now. But, as a result of that, we still believe that the market overall is going to be poised to move back up this coming week, once the concern for Greece is over. Some of the small traders, some of the individuals are trading themselves are running in fear and they may continue to drop the ball, but remember, two thirds of the stock is owned by the mutual funds in the pension funds and they really set the pace for the market.
Pat: That’s the one thing a lot of people don’t realize, is that the very large investors actually carry more weight than all of the rest of the investors combined.
Richard: Well sure, you’re out there as an individual investor trading 100 or at the most 1000 shares of something and they’re out there trading blocks of 10, 20 and 50,000 shares.
Patrick: Very good. So, what else will you be covering in your workshop? By the way what’s the next workshop date?
Richard: Again it will be May 27 and June 2. Those are both Wednesdays, at 6:30 PM at Southlake Timarron Country Club.
Patrick: Beautiful place by the way.
Richard: It’s a very nice club.
Patrick: In what do they expect to receive at those workshops?
Richard: Well, we’ll talk about key strategies that smart and wealthy investors use to invest their money and how that’s different than the way the self traitor or the average person receives information from the standard brokerage houses.
Patrick: Now who really should attend that workshop?
Richard: We typically have clients that range in size from about $250,000 in assets up to about $7 million.
Patrick: Very good. And the one thing I’ve seen, from being through that workshop, is that it’s not a sales pitch. It’s a real value, upon value, upon value of information given to help you see new ideas of preserving wealth and maintaining a tremendous, it if you want to call it, continuity from one generation to the next.
Richard: Absolutely. We talk about ways to extend wealth to multiple generations, will talk about ways to extend your IRA into a Roth and extended to many generations tax free. That’s an awesome legacy that you can create right now.
Patrick: I was really surprised with the Roth, is just how much information, or misinformation, is going on out there on the Roth. I know that after the break we’re going to be talking about a little bit more about how and why someone might convert. Because a lot of people don’t realize that the Roth creates a tax-free tool. Isn’t that correct Richard? It’s a tax-free tool for multiple generations?
Richard: Absolutely. You can extend it for multiple generations. There’s a number of ways to do that, and we have access to some of the best estate planning attorneys and CPAs that have Masters in taxation that really understand the five points of the tax code to help explain all this to you.
Patrick: Very good. I know to register you just go to 972-325-1700, that’s 972-325-1700. If you’d like to join the call tonight or join the conversation tonight, just call into 972-299-5759, that’s 972-299-5759. Or if you’re outside of the area, it’s 866-660-5759 and we’ll be right back.
Pat: Welcome back to Financial Fortress Radio. This Patrick Dougher, Richard Jordan. I want to talk about the Roth IRA. I think that it’s one of the most misunderstood new good things that’s come out in a long time. A lot of people don’t realize the benefit that you can receive by converting your IRA’s to a Roth IRA. Tell us about that.
Richard: Well Pat, I guess there’s just a lot of misconceptions out there in the market and a lot of them come from the newspaper and the magazine writers, who obviously only work at the business about 30 minutes a week so they can crank out a column.
Pat: I understand that. I know that there has been a lot of misinformation when it comes to the Roth IRA. What are some examples you’ve seen?
Richard: So if you’re interested in hearing about it from somebody that works at doing research 30 hours a week, instead of 30 minutes, listen to some of the myths that I’ve read in the papers and magazines that just aren’t true. The most common one I hear “You can’t touch the money for five years.”
Pat: Why would that even be an issue? What’s the truth about that, I should say?
Richard: Well the truth is you can touch it the next day.
Pat: I guess what you ought to do really, a lot of people have heard about this and maybe they have even heard that last show or two, at what is a Roth IRA? What makes it different than a regular IRA?
Richard: Okay, a regular IRA, you put money a way that has never been taxed. So, it is money that gets excluded from your income all the time that you’re working up until you retire. So that will’s either a 401(k), which you turn into an IRA, or it’s an IRA that you have created yourself. So, the result of this is all the money that you put in there and all the money that it’s been earning all these years is taxable. All of it when it comes out. And the problem is, according to the tax foundation is that the tax rates are going to double in the next 10 years for a 10 year period. In order to pay off the deficits that we’ve already accumulated by January 1 of this year and… and they’re still spending in Congress.
Patrick: As I understand it, that overspending trend is continuing for the next several years. It’s whip out the bigger credit card and with the almost endless limit so that you can try to buy yourself into prosperity, or spend yourself into prosperity, which doesn’t make any sense at all.
Richard: It’s never worked, it never worked in history. Socialism has never worked long term in history. So Obama was on the television last week talking about deficits expected to be $8 trillion more in the next 10 years if he stays in office and has anything to do with the economy. So, you may want to consider that when you’re voting this fall.
Pat: All I can do is just cringe because I know that if you look at, if we don’t learn anything from history we’re doomed to repeat it.
Richard: Absolutely.
Pat: We should be looking at what’s going on in Greece right now, what’s going on in many other Latin American countries.
Richard: Portugal, Spain, Italy, France.
Pat: All these countries literally were given a blank check, no limit to their spending, which really is no limit to their borrowing.
Richard: Let’s just apply common sense to it. Let’s take $100,000 a year, okay, and your credit card debt is $80,000 a year, and you have to pay whatever the short-term interest rate is to carry that debt. Well that’s analogous to where the United States is today. We’re at $14 trillion in gross domestic product and we’re just about to hit the $12 trillion mark in debt. Now if the people that are in Congress and the administration have their way, we are going to end up exceeding our gross domestic product in the next couple of years and that means we’re going to have an upside down balance sheet. The Japanese and the Chinese who buy 50% of our debt have already said they’re cutting back on buying our treasuries, which is going to push the cost of our treasuries up. They yield on the treasuries will have to go up. And that means that the cost and interest to the United States citizen has to go up and that means we have to raise taxes. You can only print so much money.
Pat: Well, that’s the key. You can only print so much money and granted, it probably won’t even print greenbacks, they’re going to just add more electronic blips into a computer. What we’re doing, again, it’s my own little study of history is we’re giving up rights for what’s become entitlements.
Richard: It’s just gotten crazy. So let’s get back to the IRA. Your IRA is an IOU to the IRS. If you like listening to Dave Ramsey and he says stay out of debt, maybe you should pay attention to this, because you have a debt to the IRS if you have an IRA that’s not a Roth IRA. And the amount of debt you have is unknown. You just know that the rates you’re going to pay are going to be much higher in the future. The original idea of the IRA is that you would be taking out just small pieces of it every year after you retire and you would end up in a lower tax bracket. Now it appears you would be in a higher tax bracket. So you’re better off converting it now to a Roth IRA, paying the tax. The IRS will give you two years to pay it, interest-free and right now with us being in the middle of a bull market, your odds are that you can pay this kind out of the gains in the stock market that you’re going to experience between now and next October and that if you don’t get a large enough rise to do that with, you can flip it back to a traditional IRA. In fact, we can show you ways to segment that and make sure that you have some winners and they are not all classified as a loser. It’s a little difficult to explain on a short show like this, but if you’ll call my desk or if you’ll come to a seminar we can explain it to you. The seminar is at the Southlake country club at Timarron Country Club this coming May 27, that’s a Wednesday, or June 2, that’s the following Wednesday at 6:30 PM.
Pat: And you register at the 972-325-1700. And then call that 24 hours a day any time. No salesman will call you.
Richard: You can call anytime day or night and our privacy policy, by the way, is we share information with nobody. We do not sell it to anybody. The only time that we have to share information is of course under a court order or if one of your trustees or guardians demands it. I think that’s a pretty reasonable privacy policy don’t you Pat?
Pat: Very good. It is. Now if they wanted to contact you directly during the week, your desk number is what?
Richard: 972-758-4484.
Pat: That’s 972-758-4484, call you direct, Monday through Friday during the day. And then also register anytime 972-325-1700. That’s 972-325-1700 to register for May 27 or June 2 at Timarron Country Club. Folks this is not a sales pitch. This is a presentation on ways that the wealthy have built their assets and send them through from generation to generation without letting the IRS take too much of it. I tell you, you won’t want to miss it. We’ll be right back.
Pat: And welcome back to Financial Fortress Radio. This is Pat Dougher, Richard Jordan talking about ways that you can make more money, and the ways that the wealthy do this, the ways that the “smart money” invests. And so far we’ve gone through a few things on the Roth IRA and how the conversion is so important that a lot of people see kind of the last great thing the government has done for us in a long, long time. They’ve actually opened a window for you to take and convert an IRA, an old regular IRA over into a Roth IRA and never pay taxes on it again. A lot of people may miss it they may think why would I want to do that and Richard let me ask you real quick, why would someone change the way they’re doing things at this moment in time?
Richard: Well, just to make a short point of it, to get higher returns and pay less fees and no commissions.
Patrick: Right but I know also with the IRA, in converting an IRA to a Roth IRA, they are going to pay taxes, but they’re going to pay taxes according to what we’ve seen at a lower rate, more current rate than what we’re going to see in the next 10 years, correct?
Richards: Absolutely. There’s no way around it. They will print some extra money, which will drive up the inflation rate, of course. They can’t increase the taxes completely to pay for the old bill; they’ll do a little bit of both. It’s sort of like when you put the frog in cold water and you turn the heat up slowly as compared to just drop them in the boiling water, people will see an increase in the money supply, it was up over 12% last year, it was up over 12% the year before it was up almost 15% the year before that. Sooner or later, we are going to see this cause inflation, so there’s a limit to how much they can increase the money supply. They have to increase taxes.
Patrick: And so with that. Somebody can liquidate their IRA and pay the tax over a two-year period, 0% interest during that time., so that it does actually raise money for the government, so to speak but then once that money is in a Roth IRA, what are some of the massive benefits of being in a Roth IRA?
Richard: Okay, in the first place, every dime after you make after that in a Roth is not taxable, ever, number one. Number two, you do not have to take a required minimum distribution. So if you have a pension and a Social Security check coming and it’s going to cover your living expenses, why would you want to take money out and pay taxes on it if you don’t need it. If you’re goal is to leave that to the next generation, now you can leave them a tax-free legacy. And in fact we can show you ways to combine that with legal entities in order to stretch that legacy over multiple generations.
Patrick: Very good. And I know some of the stuff you’re going to be talking about in your upcoming workshops correct?
Richard: Absolutely.
Patrick: And the dates on those are the 27th?
Richard: May 27 and June 2, those are both Wednesdays at Southlake Timarron Country Club, 6:30 PM.
Patrick: Very good. And, they are going to hear your presentation and it is a valuable presentation, not a sales pitch. It’s all about giving you tools and keys for building your wealth and transferring your wealth down to the next generations. So that’s going to be excellent. And also, you’re going to feed them right.
Richard: Yes. There will be a meal afterwards and hopefully that’s not the only thing you’re coming for, but if you’re kind of sitting on the fence, saying “I’m not sure it’s worth my time,” great food at Timarron Country Club. Enjoy the dinner and if you like what you hear, you can schedule a meeting. And if not you can just say “Hey you know what, I got some good information and there was a couple of things that I learned that were new and I am just going to continue to do what I’m doing.” Of course, if you continue to do what you’ve been doing, you’re going to continue to get what you’ve been getting.
Pat: Right. Now I know there is also some stipulation on, you want to have a certain kind of person there. Who do you want to come to the workshop?
Richard: Our typical client has between $250,000 and $7 million to invest in assets. So, it’s in that range. We aren’t necessarily able to do justice for someone who has less than that, and we don’t have any clients larger than that. So I wouldn’t want to tell you that we’re ready to take on a fund that’s over $10 million.
Patrick: Very good. So, one of the things that’s real key to your success is the way, not only you invest in funds, or use funds, that you have a real good group, I don’t know how to say this, your investments, tell us about your investments in that area.
Richard: Well, because I am a registered investment advisor, I have to take a fiduciary duty, and when I got into the business I said “How do I want to have my money invested?” Obviously, with the lowest cost and the highest predictable returns. And the problem that most people get into is, they use mutual funds or individual equity selections, and it’s hard to bet on any individual horse if you’ve ever been to a horse race. And if you want to bet on a predictable horses, like the Dow Jones stocks, you know the largest 30 stocks, actually have a predictable rate of return, but it’s pretty low. As a result of that, I got started looking at computerized formulas that would select the best stocks in a particular category. For instance, if you bought the S&P 500 index a year ago, you’re up 27% through last Friday, over the last 12 months and you’re pretty happy with yourself. Of course, if you lost over 50% in the previous 18 months, you’re probably not back to even yet, but pretty good last 12 months. Our comparable formula-based large cap selection fund selects the best hundred stocks out at the S&P 500, and that is up over 42%. And more importantly during this last downturn, when the S&P 500 was actually down about a little less than 1% since January 1, our formula-based large cap selection fund is up over 12%. So it’s a little more impervious to these downturns and it has a much higher rate of return when the market is moving up. So, it helps you in a down market, it helps you in the sideways markets and it helps you in the up markets. Other funds we have selected have ranged up to 78% increases over the last 12 months and those were in individual sectors of the economy. So, if you use Fortress in the future, you very likely will be able to pay your Roth bill out of the returns you’re going to make in the next two years. In fact, if you had chosen to use one of our fund selections on January 4 of this year, you would be up well over 23% and probably considering writing that tax check soon. But, you’ve got two years to write it with no interest, so why hurry.
Patrick: Yeah, no kidding. When does the IRS ever do anything without charging more than your share of interest?
Richard: Exactly. So for the average investor that doesn’t understand why they should be in a Roth, come to the seminar and we’ll explain this in much more detail.
Patrick: And the way that they will register is call 972-325-1700, that’s 972-325-1700. That phone works 24/7. No salesperson, right?
Richard: Nobody is going to call you. Our privacy policy is not to share information for any commercial purpose, we won’t sell your name, you won’t be getting calls from oil and gas salesman at nine o’clock on Friday night.
Patrick: Very good. A lot of people may want to ask you a question. I want to encourage you, if you want to ask Richard a question call now on the 972-299-5759 and join the show. It’s 972-299-5759. Or if you’re outside the DFW area it’s 866-660-5759. So let me just say it again, if you want to call and ask Richard a question right now, it’s 972-299-5759 or if you need to call him during the week, it’s 972-758-4484, that’s 972-758-4484 and that’s right to your desk Richard, right?
Richard: That’s correct. I could be in the middle of a trade, I could be in with a client. So don’t be scared to leave a voicemail. I’ll get back to you as soon as I can. I will return all my calls after 3 PM when the market closes.
Patrick: Now, you’ve actually got offices all over the Metroplex right?
Richard: That’s true. We’ve got offices in North Dallas, Northeast Dallas. We’ve got them in Addison, in Arlington, in the Grapevine Southlake area. Our primary headquarters is in Plano, so we can cover a lot of area for you if you don’t want to drive too far, we sure understand that. And if you register for the seminar, remember you won’t have to talk to a salesman, just leave your name, address and phone number and we’ll send you out the confirmation. It’s May 27 and June 2 at 6:30 PM. Call 972-325-1700 and you’ll get a chance to hear from somebody that will act as a fiduciary with your money, act like it’s their own money and be careful with it, and not be driven by commissions. No conflict of interest here.
Patrick: And that’s because you are a Registered Investment Advisor, not a broker. A lot of people don’t understand that brokers, it’s not that they’re bad people; it’s that they do have a conflict of interest, right?
Richard: They do have a conflict of interest because they get to keep their job if they generate enough commissions. They don’t get to keep their job if they don’t. So these formula-based funds that I’ve talked about earlier, they don’t pay commissions. And unfortunately, that means your broker, if he knows about them, if he’s ever even heard about them, will not recommend them. Now, he may put his mom in them, he may put his brother in them, but he’s not going to put you in them I don’t care if you ride the country club cart with him every week.
Pat: Well, and I mean really, why should he?
Richard: Yeah, would you risk losing your job over a recommendation? Of course not. It’s the way they operate, the FCC created the Registered Investment Advisor for people that were smart enough to warrant a fiduciary to take care of their money.
Patrick: That’s right and typically they were the more affluent that were using the folks in that area.
Richard: More affluent and more educated.
Pat: And they understood that there is a difference. So one of the things that I wanted to encourage you to do is get registered for the 27th or June 2 for the upcoming workshop and the way to do that is just call 972-325-1700 that’s 972-325-1700. If you want to call and ask Richard a question next week or meet with him it’s 972-758-4484, 972-758-4484. I just want to encourage you, you need to get registered, you need to go to one of these workshops because in about an hour, Richard’s going to tell you some keys to creating massive wealth for yourself and for generations to come. We’ll be right back.
Pat: Welcome back to Financial Fortress Radio with Pat Dougher and Richard Jordan. We’re talking about ways that you can build, keep, and transfer wealth successfully. I know that a lot of people have been listening to us and they hear us talk about the IRA Roth conversion. We’ve given several of the myths, we’ve talked about several of the reasons why this is probably the last great bastion of opportunity in a way, that the government is going to kiss us with. Because after this, it will get interesting in the tax realm, the coming tax tsunami. And it will be huge, talking doubling the tax rates that we have right now. And that sounds outlandish but we have had high tax rates in the past.
Richard: Oh sure, in the 60s, our top tax rate was 70%. Britain, two weeks ago raised their tax rate from 40% to 50%. We think that’s going to give Obama any ideas?
Pat: I’m telling you, there’s a lot of fear out there that we are going to have higher tax rates. If that’s the case, then why, why would you not convert your IRA right away?
Richard: I guess just because you’ve got a problem with procrastination. This is nothing to procrastinate over folks. And there’s no good reason to over analyze it. What a lot of people have done is they have started building spreadsheets, or they’ve gone to a certified financial planner, and they get the “Well, it can be really complicated. Let me see if I can build a couple hundred spreadsheets for you and try to explain it to you.” Can anybody look through an inch and a half or 2 inches of material? It is just unbelievable to think that the average investor is going to read all that garbage. There’s really only three things that can happen to your investment account in the market, right? You can go up enough to pay the tax. They can go up not quite enough, but it will still be worth it to convert some of it. They can go straight across, stay the same in other words. Or it can drop. But you’ve got until next October to decide whether or not to keep it in a Roth. So the sooner you convert it, especially now that the numbers dropped a little bit, this next week would be an ideal time. Convert it now and you don’t have to make the final decision until October 17.
Pat: Of 2011? It’s not next October but the next, next October?
Richard: It’s 17 months away.
Pat: Which is enough time to analyze your investment, see if it’s gone up, stay the same, or fallen.
Richard: Exactly.
Pat: And if it’s gone the same, or fallen, you just transfer it back right?
Richard: Flip it back to a traditional IRA. Don’t pay any taxes on it. 30 days later you can try to convert it to a Roth again and let it run for another year. Listen, imagine if you could go to Las Vegas, roll the dice, and see what number comes up before you placed your bet. That’s kind of what this is like.
Pat: That’s a good illustration. I have to admit, you sit there and so often we think “Well, I’ve got to think about that. No you don’t really. You ought to move on this.
Richard: Quit over analyzing it.
Pat: Well, it goes back to what we were talking about earlier in the show. There was a window earlier this week where the market ran away with itself for a few hours, okay, because of some electronic glitch, whatever you want to call it. It fell. But there were people that moved during that time. Now some of them get to keep all their stuff, but a lot of people made a lot of money as they were there when the opportunity was available. Isn’t that right?
Richard: Absolutely.
Pat: And that’s what we are really talking about. The Roth IRA conversion.
Richard: And we can show you how in less than one hour at the seminar on May 27 or June 2. Southlake Timarron Country Club, 6:30 PM. How you cannot afford to let this opportunity go by. All you have to do is call 972-325-1700 to register.
Pat: That’s 972-325-1700. No salesman will call you back. It’s just a matter of 24/7. Just leave your registration. It’s totally private. Now I know that a lot of people will probably want to ask Richard a question and they can call you direct to your line at 972-758-4484.
Richard: Correct. That goes right to my desk. If I’m down the hall in the conference room, or busy with a client, or doing a trade, of course I will not pick up the phone at that point in time. But I will try to get back to everybody that same day after 3 PM after the market closes.
Pat: Very good. Register for the workshop at 972-325-1700 as quickly as you can. You don’t want to miss this and really I know that a lot of people don’t understand that what you’re going to be talking about, Richard, are The Seven Keys to Smart Investors and what they use to invest their money, isn’t that right?
Richard: That’s right. How they use it to invest with and how they pass it on to the next generation. High return, low fee investment solutions. High returns without stock market risk. Safe and hidden income opportunities that are out there right now. Huge estate and income tax saving ideas. Anybody listening out there want to pay more than their fair share in taxes? Because that’s my definition of a true patriot. You know I ask that question in many of my seminars and I rarely get a hand on that one.
Pat: And those that do are just waking up or something from their nap.
Richard: If they raise their hand on that one, usually they have got kind of wild eyes. And I think we’ve had the guys with the funny suits come in, you know in the funny white suits, to cart them off because if you want to pay more than your fair share of taxes, I mean God bless you.
Pat: I mean, here’s the one thing about it. I heard one CPA say having a tax problem, as, in order to have to pay taxes meant that you had to earn something. So I guess that’s a good thing. But most of us look at IRS and KGB and think they’re the same letters. So what else will they get?
Richard: They’ll find out that their IRA is an IOU to the IRS. So you really need to consider this Roth conversion. They’re going to find out how to enter and exit the stock and bond markets and to make money. Well, they won’t find out everything of course because we’re not going to give away all our secrets, but we use formulaic investment decision making criteria so that we can help our clients and take the emotion out of the investing. It’s been proven that the average investor, and in fact almost all investors are predictably irrational. A professor at Duke wrote a book about that that came out earlier this year. And he said it’s the reason that self traders failed to beat the index averages over 90% of the time. And you would expect that because they’re not pros. They only work at it an hour or two a week. But what you wouldn’t expect is that the guys that run the big funds also failed to beat the averages over 80% of the time because they have a conflict of interest. Their compensation is based primarily on the size of the fund not the performance of the fund. What that means is they are doing it for a different reason than you’re doing it. You’re putting money in to try to make money, they are just trying to drag as much money into the fund is possible to get the highest possible paycheck. Does that sound like a smart place to put your money?
Pat: No. And in fact, that’s the one thing that people need to learn, how to do it right and how to bring in the right advisors, and that’s the real key, advisors around you. Because I do believe that with a multitude of counselors there is a great deal of profit to be gained and protection. So I know that you want to call right now and register for the workshop at 972-325-1700. Register for the upcoming workshop on the 27th or June 2 right?
Richard: Yes.
Pat: Wednesdays at Timarron Country Club and real quickly, Richard who really should be in attendance?
Richard: Again, most of our clients and people that come to our seminars have from $250,000 to $7 million to invest in today know there’s a difference between a broker in a Registered Investment Advisor. They are looking for someone to care about their goals and retirement needs like we do, someone that has the Golden rule in our mission statement like we do, someone that would treat you just like you would want to be treated yourself. So, if that’s what they’re looking for, that so we deliver. And we’ve got offices all over the area. So you can see us in northeast Dallas, Plano, Addison, Arlington or the Grapevine Southlake area. We would appreciate seeing you at the seminar May 27 or June 2 6:30 PM. Just call 972-325-1700. It’ll be at 6:30 PM.
Patrick: 972-325-1700, that’s 972-325-1700. Or call Richard direct 972-758-4484, that’s 972-758-4484. We’ll talk to you next week.