Build a Framework
for Your Tax-Free Retirement Vision
RJ Gustilo is licensed in CA and specializes in diversified low-tax retirement planning and strategies. I use a truly unique financial strategy that allows you to have your savings in one account earning compound market-like returns and at the same time using those “same” dollars to invest elsewhere.
This is a very powerful and little-known strategy that also allows you to borrow money for a huge TAX-FREE retirement income stream. Yes, you can use OPM (Other People’s Money) to propel your retirement savings and I’m one of the few hundred U.S. financial advisors (out of 900,000+) who have access to this program!
Life Changes & Your Policy Should Too!
The right life insurance policy is unique to you and dependent on your financial and personal needs. There are no one-size-fits-all policies. As your life evolves, your life insurance coverage may also need to change in order to reflect your life's current needs.
Thinking of owning your own business?
Opening your own business is exciting and thrilling. It's everything that comes after that dictates whether a small business will make it or not.
The investment process is comprised of several steps that enable you to select a portfolio appropriate to your risk tolerance and desired return. The primary steps in this process are:
A derivative is an investment instrument whose value is based on underlying assets such as stocks, bonds, commodities, currencies, interest rates and market indexes. Options are one of the most common types of derivatives and are a useful tool for enhancing a portfolio's income and in many cases, reducing risk. Other types of derivatives include futures contracts, forward contracts, and swaps, but these are more appropriate for sophisticated investors.
Suppose Mr. N. Vestor invests $100 in an investment that earns 10 percent this year and 10 percent the next year. What is his cumulative return? The answer is 21 percent.
Here's why. N. Vestor's 10 percent gain makes his $100 grow to $110. Next year, he earns another 10 percent, leaving him with $121. His investment has earned a cumulative 21 percent return over two years. His annualized return, however, is 10 percent.
The rule of 72 is a way of finding out long it will take for your investment to double. Divide an investment's annual return into 72, and you will have the number of years necessary to double your investment.
Example: An investment's annual return is 10 percent. Ten percent divided into 72 is 7.2, so your investment will double in 7.2 year.
If you reinvest all of your gains, including dividends and interest, you will be getting the most from compounding. The percentage you achieve is termed "total return." It includes appreciation, interest and dividends. It is particularly important in examining the past and current performance of mutual funds.
Yield is the amount of dividends or interest paid annually by an investment. The yield is usually expressed as a percentage of the investment's current price. It does not consider appreciation.
Because certificates of deposit and money-market funds maintain the same value, their total return does not differ much from their yield. But because stocks and bonds fluctuate in price, there can be a large difference between yield and total return.
Investors often take the following shortcut, which often yields misleading results. Instead of looking at total return, they simply compare their year-end portfolio value with the value at the beginning of the year, and attribute the entire growth to investment gains.
The reason this shortcut may be misleading is that any additional investments or withdrawals made during the year are not taken into account.
"The hardest thing in the world to understand is the income tax." - Albert Einstein
"The difference between death and taxes is death doesn't get worse every time Congress meets." - Will Rogers
"An income tax form is like a laundry list - either way you lose your shirt." - Fred Allen
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