The Affinity Group

New Affinity Website is Up and Running

2009-09-30T15:43:00.000-07:00

You may have noticed a break in blog posts for the past 2 months. The cause of this has been the complete re-design of our website. Feel free to visit us at www.theaffinitygroup.org

As a result of all the time and effort put into the new website, the blog has been lacking. In the future, there will be a more concerted effort to keep the blog more up to date. there has been a lot hapening here, and this is a great way to get the information out to you. In the future there may be more projects that take up enough time that the blog might be neglected, but we will be sure to let you know more ahead of time. Thank you for your patience.

So a little more information about the website. The goa in creating this site was to make a very easy to use site for our clientss and agents alike. We wanted to get rid of the clutter that so many sites experience. We also wanted a site that is more modern, yet at the same time is not advanced to a point that less computer savvy people won't feel comfortable using it. We feel that this has been accomplished, but the real decision on that is up to you. There are going to be new sections launched and updates created, so feel free to check back in from time to time and see what is new.

New jobless claims rise to 554K, total rolls fall

2009-07-23T07:14:00.000-07:00

WASHINGTON – The number of newly laid-off workers seeking jobless benefits rose last week, though the government said its report again was distorted by the timing of auto plant shutdowns.
Unemployment insurance claims have declined steadily since the spring, but most private economists and the Federal Reserve expect jobs to remain scarce and the unemployment rate to top 10 percent by year-end.
The Labor Department said Thursday that its tally of initial claims for unemployment insurance rose by 30,000 to a seasonally adjusted 554,000. That was above analysts' estimates of 550,000.

to read this complete article, go to the link http://news.yahoo.com/s/ap/20090723/ap_on_bi_go_ec_fi/us_economy

This is just another example of conflicting reports. "the economy is getting better" is the speech we are given, "we are losing record numbers of jobs" is the FACT that we are given. Not going to harp for too long on this, but it seems that in this fact versus fantasy battle, the facts are winning out. We are still a long way off from recovery.

Post-Tax versus Pre-Tax

2009-07-08T10:33:00.001-07:00

What is PRE-TAX?
Well, many of you might know this by another name, TAX DEFERRED. An investment in which some or all taxes are paid at a future date, rather than in the year the investment produces income.
Tax-deferred investments in particular refer to retirement accounts which allow deferral of taxes on contributions, growth, or both; taxes are not paid until withdrawal of funds during retirement.

What is POST-TAX?
This is the exact opposite of deferring your taxes. you are going to pay the tax on the money you put in now rather than later, and your withdrawal will be tax free.

So, in today's economy, there is a great debate on what is best. For decades, the financial thinking has been to put your money away pre-tax. At the time, the thinking was very sound. In the 80's, income tax was around 45%. Before that it was even higher. The trends in the US have been for taxes to consistently go lower. So the financial thinking has been, we will put more money away now, pay less taxes on our income, and then pay even less taxes on our withdrawakls down the road. Right now it is at aroung 26%. By international standards 26% is rather low, in Japan and much of Europe, Taxes are upwards of 50%, and in some cases 80%. We can expect the taxes in the USA to reach these levels in the foreseeable future.

It is calculated that the USA collect approximately 30% of all it's income from income taxes. So What does that mean for us? Well, as of 5:50PM on July 8th, 2009 the USA has a deficit of $11,527,661,864,636.19. Yes folks, that is 11 TRILLION dollars, and increasing. Taxes will be the governments answer to this.

To us, it is very clear. TAXES ARE GOING UP. Times have changed, and it is time for our retirement planning to change also. Pay the taxes today, which we know will be lower, and take the money out tax free in the future.

467K jobs cut in June; jobless rate at 9.5 percent

2009-07-02T08:58:00.000-07:00

"WASHINGTON – Employers cut a larger-than-expected 467,000 jobs in June, driving the unemployment rate up to a 26-year high of 9.5 percent, suggesting that the economy's road to recovery will be bumpy.
The Labor Department report, released Thursday, showed that even as the recession flashes signs of easing, companies likely will want to keep a lid on costs and be wary of hiring until they feel certain the economy is on solid ground.
June's payroll reductions were deeper than the 363,000 that economists expected and average weekly earnings dropped to the lowest level in nearly a year.
However, the rise in the unemployment rate from 9.4 percent in May wasn't as sharp as the expected 9.6 percent. Still, many economists predict the jobless rate will hit 10 percent this year, and keep rising into next year, before falling back.
All told, 14.7 million people were unemployed in June.
If laid-off workers who have given up looking for new jobs or have settled for part-time work are included, the unemployment rate would have been 16.5 percent in June, the highest on records dating to 1994."

to read the full report, go to http://news.yahoo.com/s/ap/20090702/ap_on_bi_go_ec_fi/us_economy

Not to be a kill-joy to all the analysts who say that the economy is recovering and that the recession is all but over, but this news is not encouraging to me. I believe that there is still a long road to recovery. Not only have retirement funds completely diminished at an average of 40% losses, but the recent gains on Wall Street have done little to correct course and slow the losses. There is increasing evidence that the market is currently experiencing a bump before another decline. This is much like what was experienced at the beginning of the year, when the market surged to a gain of 20%, before a severe loss of 38%. We are still at this point, more than 25% below what market highs were just a year ago.

No matter what way you look at it, Optimist, Pessimist, or somewhere in the middle. There is no denying the damage that has been done to the economy and the long road to recovery. It is not too late to invest your product wisely. Even if you have lost a significant amount of your funds, we will make sure that retirement will be a reality and not just a pipe dream. Our clients have experienced complete security in their retirement funds during this difficult time in our economy.

Give us a call at 877-251-9706 for a free financial evaluation. We are looking out for you!

What to Expect

2009-06-23T11:26:00.001-07:00

This blog is the first of many steps to actively connect with our clients. We are also in the process of re-designing our website to be a more up-to-date as well as more informative. We are hoping to have the website up by late July/early August.

So, what should you expect from this blog? You will have weekly updates on what is going on in the financial and insurance sectors. You will have periodic updates on the products that AIA carries. As well, we will inform you of any new and exciting information that is happening in our company and in the communities that we serve. Our goal is to make this an informal setting to get information about The Affinity Group.

About Us

2009-06-23T10:42:00.000-07:00

WELCOME!!!

Here at The Affinity Group, we believe that everyone has the ability to "Retire Wealthy, on a Teacher' Salary". It is more than a slogan for us. A teacher embodies the qualities of so many Americans that we hold dear: persistent, hard working, dedicated, willing to sacrifice of themselves for the betterment of others. Like so many Americans, teachers make a minimal amount of income for their hard work, and thus have been neglected by financial institutions trying to cater to the "upper-class" of America.

We know that we can provide these essential services that everyone has the right to, but so few receive. We know that everyone deserves to get financial advice that makes sense for their specific situation, not just for their specific income bracket. We are here to help Americans make wise decisions with their money. We understand that funds are limited, so we know how to be creative to make that dollar stretch further than you would imagine possible.

When times are hard, traditional financial analysts will tell you to simply "wait it out". We disagree! We believe it is time for a change! A change to this "Wait it Out" mentality that has allowed millions of Americans to watch there retirement funds disappear. A change to the idea that Americans will now have to work another 5 years to make up the money that they have lost. Why not stop the losses and invest in something else? Something that works? Why should you wait it our and indefinate ammount of time, hoping that your retirement will be enough. It is time to expect to thrive in your retirement, not just service in your retirement.